STORY: Apple has abused its dominant position and cost British consumers up to $1.8 billion.
That was what a London tribunal heard on Monday (Jan 13).
The U.S. tech giant is accused of charging app developers an unfair 30% commission through its App Store.
Apple faces a mass lawsuit brought on behalf of around 20 million iPhone and iPad users in the UK.
They were allegedly overcharged for app purchases.
Apple argues the case is meritless.
The firm also believes it overlooks the benefits to consumers of the integrated approach of its iOS operating system – which prioritizes security and privacy.
It is the first mass lawsuit against a tech giant to come to trial under Britain’s growing class action-style regime.
Many other cases are waiting to move forward against the likes of Google, Meta and Amazon.
Rachael Kent is a British academic bringing the case.
She argues Apple has made “exorbitant profits” by excluding all competition for the distribution of apps and in-app purchases.
Her lawyers argue this dominant position allows the company to impose restrictive terms on app developers.
They say it also allows them to charge excessive commission, which they believe is taken on by consumers.
Apple has faced pressure from regulators in the U.S. and Europe over the fees it charges third-party developers,
The firm argues 85% of developers do not pay any commission at all.
The trial is due to last seven-weeks and expected to hear evidence from Apple’s chief financial officer later this week.
