Apple faces $1.8 billion lawsuit over app store fees in landmark UK trial

Apple is defending itself in a London tribunal against allegations that it exploited its dominant market position by imposing a 30% commission on app developers through its App Store.

This fee is claimed to have cost British consumers up to £1.5 billion ($1.8 billion or approximately ₹15,601 crore).

The lawsuit, brought on behalf of around 20 million iPhone and iPad users in the United Kingdom, alleges that Apple’s commission structure led to inflated app prices. The case, currently being heard at the Competition Appeal Tribunal, marks the first class-action-style lawsuit against a major tech company under the UK's evolving legal framework.

The claim is spearheaded by Rachael Kent, a British academic, who argues that Apple has made "exorbitant profits" by maintaining exclusive control over app distribution and in-app purchases on its iOS platform. Lawyers for Kent contend that Apple’s dominant position allows it to enforce restrictive terms on developers, with the financial burden ultimately passed on to consumers.

"Apple holds a 100% monopoly position," said Mark Hoskins, Kent’s lawyer, emphasising the company’s complete control over its ecosystem.

Apple, however, has dismissed the case as baseless, asserting that the App Store’s integrated model provides substantial security and privacy benefits to consumers. The company also highlights that 85% of app developers pay no commission at all, suggesting that the fees are a reflection of the "enormous benefits" provided by its iOS ecosystem.

Marie Demetriou, Apple’s legal representative, argued that the lawsuit disregards the company’s intellectual property rights and mischaracterises its business model as anti-competitive. She described the plaintiffs’ demand to allow developers unrestricted access to Apple’s technology as "expropriation of property rights masquerading as competition."

The trial, which is expected to last seven weeks, will hear testimony from Apple’s Chief Financial Officer Kevan Parekh.

This lawsuit is part of a broader wave of legal challenges faced by tech giants in the UK. Apple is also contending with a separate case brought on behalf of app developers over its commission practices. Similarly, Google is preparing to face a $1.1 billion (₹9,522 crore) lawsuit later this year over its Play Store fees. Other major players, including Meta and Amazon, are also embroiled in high-stakes mass lawsuits.