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Apple Fights $1.8 Billion App Store Lawsuit in Landmark UK Class Action Case

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Apple is defending itself against a mass lawsuit in the United Kingdom that accuses the company of abusing its dominant market position by charging app developers a 30% commission on App Store transactions. The case, heard at London’s Competition Appeal Tribunal, seeks up to £1.5 billion ($1.8 billion) in compensation for approximately 20 million iPhone and iPad users in the UK, who were allegedly overcharged for app purchases.

Allegations of Monopoly Practices

Rachael Kent, a British academic spearheading the lawsuit, claims Apple has generated “exorbitant profits” by maintaining a “100% monopoly” over app distribution and in-app purchases on its iOS platform. Kent’s legal team argues that Apple’s restrictive terms for developers and its high commission fees ultimately inflate costs borne by consumers. Lawyer Mark Hoskins, representing Kent, stated in court filings that Apple’s practices have stifled competition and innovation in the app ecosystem.

Apple’s Defense

Apple, however, contends that the lawsuit is meritless, arguing that the commission reflects the benefits provided by its iOS ecosystem, which prioritizes security, privacy, and seamless integration. The company claims that 85% of app developers using its platform do not pay any commission and accuses the lawsuit of disregarding its intellectual property rights. Marie Demetriou, Apple’s lawyer, argued that the demand for Apple to allow developers free use of its technology constitutes an “expropriation of property rights masquerading as competition.”

Broader Implications

This lawsuit marks the first class action-style case against a tech giant to reach trial under Britain’s evolving legal regime for collective redress. The case could set a precedent, as other major lawsuits targeting Google, Meta, and Amazon are waiting to be heard. Google is also facing a similar $1.1 billion case over its Play Store commissions in 2025.

Upcoming Testimonies and Trial Details

The trial is expected to last seven weeks, with testimony from Apple’s Chief Financial Officer Kevan Parekh scheduled later this week. The case comes amid increasing regulatory scrutiny of tech giants in both the U.S. and Europe over practices perceived as anti-competitive, especially concerning fees charged to third-party developers.

What’s at Stake?

If the tribunal rules against Apple, it could not only lead to significant financial penalties but also force the company to revise its App Store policies. Such an outcome could have a ripple effect across the tech industry, influencing how other platforms like Google Play Store operate globally.

 

Allegro’s Ceneo Sues Google for $568 Million Over Antitrust Claims

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A subsidiary of Polish e-commerce giant Allegro, Ceneo, has filed a lawsuit against Alphabet (Google’s parent company), Google Ireland, and Google LLC, seeking damages of 2.33 billion zlotys ($567.6 million). The lawsuit, filed on Monday, claims that Google’s preferential treatment of its own price comparison service in search results has harmed Ceneo’s business by undermining competition.

Ceneo, which operates a popular online price comparison service in Poland, argues that Google’s practices have caused substantial financial losses. According to Allegro, the damages comprise 1.72 billion zlotys for the losses sustained by Ceneo, along with about 615 million zlotys in interest payments, accruing from 2013 to November 29, 2024. Ceneo also seeks statutory interest on the total amount from the date of the lawsuit until the damages are paid.

In response, Google rejected the claims, asserting that its “Shopping remedy” has been successful in supporting a variety of retailers, brands, and comparison shopping sites across Poland and Europe. A Google spokesperson noted that the company was carefully considering its options.

This lawsuit is linked to a previous European Union antitrust case, where Google was fined $2.7 billion for abusing its dominance in the search engine market to favor its own price comparison service. The EU’s ruling in that case also aimed to curb Google’s market power and encourage fair competition in the sector.

In addition, the U.S. Department of Justice has called for Google to divest its Chrome browser and prevent the company from re-entering the browser market for five years, in an effort to limit its control over the digital ecosystem.