03 January 2025 , 08:43
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A seven-week trial is set to begin later this month at the Competition Appeal Tribunal over a £1.5billion lawsuit claiming British iPhone users were overcharged.
iPhone maker Apple faces a £1.5billion class action lawsuit hearing for allegedly overcharging British users.
A seven-week trial will begin on January 13 at the Competition Appeal Tribunal. The action has been brought by academic Dr Rachael Kent, who alleges that Apple ’s 30% App Store commission is in breach of competition laws.
She says the company is abusing its dominant position in the app market at the expense of ordinary people. Dr Kent, from King’s College London, told the Mirror : “Many consumers wouldn’t know this is happening.
“In-app purchases can only be made on the App Store but Apple being able to charge a high commission on these means they are shutting off competitors and overcharging millions of customers.”
Dr Kent said: “I have Apple products and I think it is an amazing innovator – it isn’t about challenging the innovation. Operating in a certain way for so long doesn’t mean you can charge high rates of commission due to being the dominant market player.”
Apple said: “We believe this lawsuit is meritless. The commission charged by the App Store is very much in the mainstream of those charged by other digital marketplaces.”
The firm, based in California, is also facing claims it has locked 40 million UK customers into its iCloud service.
It said: “Our users are not required to use iCloud.”
What exactly is the claim about?
It alleges Apple breached competition law by excluding competition, or charging an unlawful level of commission on digital purchases in the App Store.
I’m an Apple customer. Does this affect me?
The claim covers anyone who made a purchase in the UK App Store on an iPhone or iPad between October 1, 2015 and November 15, 2024. This includes paid apps, subscriptions, and in-app purchases.
How do I sign up?
nyone potentially impacted has been automatically opted in. But if compensation is awarded, you will need to come forward to claim.
How much could I get?
Dr Kent is seeking £1.5bn, which will be distributed to all claimants. This could be around 20 million people.