January 2025 marked the start of a major class action lawsuit against Apple. If successful, the claim could redefine the rules for tech giants operating in the UK.
What is the Apple App store claim about?
Lawyers allege Apple abused its dominant position by charging developers an unfair 30% commission for using its App Store. According to the claim, this behaviour breaches both European and UK competition laws.
The lawsuit argues Apple’s 100% market dominance effectively blocked competitors from entering the market. Developers had no choice but to accept Apple’s terms, leading to inflated prices for consumers. The claim, brought on behalf of around 20 million UK iPhone and iPad users, alleges they were overcharged for app purchases due to these practices.
The case will be heard at the Competition Appeal Tribunal over the coming months.
Apple’s response
Unsurprisingly, Apple disputes the allegations, labelling the case as “meritless.” The company argues its commission reflects the significant benefits developers gain from its iOS ecosystem, which it says fosters innovation and ensures app security.
Why does it matter for big tech?
This lawsuit isn’t just about Apple – it’s a wake-up call for the entire tech industry. It’s the first case of its kind in the UK, but it’s certainly not the last. A wave of legal challenges against big tech is set to hit the Competition Appeal Tribunal this year, including:
- Google Play Store case: A similar claim regarding the commission Google charges developers for access to its Play Store.
- Another Apple App Store case: This time, app developers are the ones bringing the action.
- iPhone throttling case: Apple faces another claim, which could lead to a payout of up to £853 million if successful. Find out more.
- Cases against Meta and Amazon: Investigations and lawsuits targeting competition and consumer protection issues.
What's next?
If the Apple App Store claim succeeds, it could pave the way for stricter regulations and further lawsuits against other tech giants. It could also mean millions of UK users are in line for compensation – while forcing companies like Apple to rethink how they operate.
The stakes are high, and this is just the beginning of what could be a transformative year for big tech accountability.
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