LONDON, Jan 13 (Reuters) - Apple ( AAPL ) has abused its
dominant position by charging app developers an unfair 30%
commission through its App Store, costing British consumers up
to 1.5 billion pounds ($1.8 billion), a London tribunal heard on
Monday.
The U.S. tech company is facing a mass lawsuit brought on
behalf of around 20 million iPhone and iPad users in the United
Kingdom, who were allegedly overcharged for app purchases.
Apple ( AAPL ), however, says the case is meritless and overlooks the
benefits to consumers of the integrated approach of its iOS
operating system, which prioritises security and privacy.
The lawsuit at London's Competition Appeal Tribunal is the
first mass lawsuit against a tech giant to come to trial under
Britain's burgeoning class action-style regime, with many other
cases waiting in the wings.
A similar $1.1 billion case against Google over
the commission it charges app developers for access to its Play
Store begins later in 2025.
Apple ( AAPL ) is facing a separate case brought on behalf of app
developers over its App Store commissions, while Google, Meta
and Amazon ( AMZN ) are also fighting high-value mass
lawsuits in Britain.
'100% MONOPOLY'
Rachael Kent, the British academic bringing the case which
began on Monday, argues Apple ( AAPL ) has made "exorbitant profits" by
excluding all competition for the distribution of apps and
in-app purchases.
This dominant position, her lawyers argue, allows Apple ( AAPL ) to
impose restrictive terms on app developers and charge excessive
commission, which they say is ultimately borne by consumers.
"Apple ( AAPL ) is not just dominant ... it holds a 100% monopoly
position," Kent's lawyer Mark Hoskins said in court filings.
But Apple ( AAPL ) - which has faced mounting pressure from
regulators in the U.S. and Europe over the fees it charges
third-party developers - says 85% of developers do not pay any
commission at all.
The company's lawyer, Marie Demetriou, said in court filings
that the commission reflects "the enormous benefits conferred
through Apple's ( AAPL ) innovation by the iOS ecosystem as a whole".
Kent's case simply ignores Apple's ( AAPL ) intellectual property
rights, Demetriou added, describing the contention that Apple ( AAPL )
must let developers use its technology as they wish as
"expropriation of property rights masquerading as competition".
The seven-week trial is expected to hear evidence from
Apple's ( AAPL ) chief financial officer Kevan Parekh later this week.