Apple Faces Billion-Pound Lawsuit Over UK App Store Practices
A high-stakes trial began in London on Monday, January 13, as Apple faced allegations of abusing its dominant position in the UK app store market. The lawsuit, which seeks more than £1 billion in damages, centers on claims that Apple’s policies unfairly excluded rival app stores and overcharged consumers.
Filed in May 2021, the complaint accuses the tech giant of breaching European and UK competition laws by preventing alternative app stores on iOS devices, including iPhones and iPads. Plaintiffs argue that Apple’s practices have financially impacted approximately 20 million UK users.
A key issue in the case is Apple’s 30% commission on apps and in-app purchases through its App Store. The lawsuit alleges this surcharge, described as “at the expense of ordinary consumers,” is excessive and stifles competition. Rachael Kent, a digital economy expert from King’s College London, is leading the claim alongside law firm Hausfeld & Co.
Kent highlighted the widespread impact of Apple’s policies, pointing out that the surcharge applies to most apps but excludes physical goods and services platforms like Deliveroo and Uber Eats. Consumers who purchased apps or subscriptions via the UK App Store between October 2015 and November 2024 could be eligible for compensation, with estimated damages reaching £1.5 billion.
Apple has dismissed the lawsuit as “meritless,” asserting that the commission aligns with industry standards. The company noted that 85% of apps on its platform are free and reiterated its commitment to providing benefits to both consumers and developers.
The trial, expected to last seven weeks at the Competition Appeal Tribunal, is part of a broader wave of scrutiny against Apple’s App Store practices. Globally, regulators and developers have raised concerns over the platform’s restrictions and fees.
In a related case, Apple is facing a £785 million complaint over developer charges. The European Commission has also accused the company of violating competition rules by barring developers from redirecting users to external platforms. In response, Apple announced in August that iOS users in the EU would soon be able to delete the App Store and access rival platforms.
Kent stressed the importance of collective legal actions in driving corporate accountability, stating, “They’re responding to these investigations and also being told what to do. I don’t think they’re going to do it voluntarily, which is why it’s really important to bring these collective actions.”
The outcome of the trial could have significant implications for Apple’s operations and the future of app store practices in the UK and beyond.