Apple faces $1.8 billion lawsuit over App Store fees in the UK

Apple, one of the world’s largest technology companies, is grappling with a historic legal challenge in the United Kingdom. The company is accused of abusing its dominant market position by imposing a controversial 30% commission fee on app developers, a practice that plaintiffs argue has led to British consumers overpaying by as much as 1.5 billion pounds ($1.8 billion). This lawsuit, which represents approximately 20 million iPhone and iPad users in the UK, has captured significant attention as it marks the first class-action case against a tech giant to proceed to trial in the country.

The case, led by Rachael Kent, a British academic, alleges that Apple’s tight control over its App Store ecosystem has allowed the company to generate “exorbitant profits” by excluding competition in the distribution of apps and in-app purchases. Lawyers representing Kent argue that Apple’s practices are not only restrictive but also exploitative, ultimately passing on inflated costs to consumers. According to court filings, Apple holds what they describe as a “100% monopoly position,” enabling the company to dictate terms and charge excessive fees to app developers.

Apple has firmly rejected the allegations, branding the lawsuit as unfounded. The company emphasizes that its App Store model delivers unparalleled security and privacy benefits to users, which it argues justify the commission fees. Marie Demetriou, Apple’s legal representative, pointed out that 85% of app developers on the platform do not pay any commission at all. She further contended that the lawsuit disregards Apple’s intellectual property rights, describing the demand for open access to its technology as “expropriation of property rights masquerading as competition.”

This trial, being heard by the Competition Appeal Tribunal in London, could set a significant precedent in the UK’s burgeoning class-action framework, which has increasingly targeted major tech firms. Alongside Apple, other industry giants such as Google, Meta, and Amazon are facing similar high-profile lawsuits over their business practices.

Notably, a separate $1.1 billion lawsuit against Google, related to its commission fees for the Play Store, is slated to begin later in 2025. Apple is also dealing with an additional case brought by app developers over its App Store fees, indicating a growing wave of legal scrutiny over app distribution platforms.

The seven-week trial promises to delve deep into Apple’s financial and operational practices, with testimony expected from prominent figures, including Apple’s Chief Financial Officer, Kevan Parekh. This litigation underscores the mounting pressure on tech giants to justify their fee structures and market dominance amid increasing regulatory and legal challenges in both Europe and the United States.