Jan. 13 (UPI) — Apple is set to appear in court on overcharging claims in Britain on Monday based on a complaint led by a King’s College London academic who said the company is breaking competition laws.
The class-action complaint is being heard by Britain’s Competition Appeals Tribunal. The plaintiffs hope to prove that Apple is snuffing out competition while charging users costs that are outside the range of normal company profits.
Rachel Kent, who filed court documents on behalf of the country’s iPhone and iPad customers, charged that Apple’s App Store gobbled up $15 billion in revenue in 2024 while spending less than $122 million in operating costs. Kent said users have been left with no other way to lower their bills.
“Apple guards access to the world of apps jealously and charges entry and usage fees that are completely unjustified,” Kent said. “This is the behavior of a monopolist and is unacceptable. Ordinary people’s use of apps is growing all the time, and the last year in particular, has increased our dependence on this technology.
“Apple has no right to charge us a 30% rent for so much of what we pay on our phones — particularly when Apple itself is blocking our access to platforms and developers that are able to offer us much better deals.”
The trial is expected to last seven weeks with the company’s new chief financial officer Kevan Parekh expected to take the stand.
Apple has pushed back, saying that the lawsuit lacks evidence of wrongdoing and its charges are well within tech norms.
“The commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces,” Apple said. “In fact, 85% of apps on the App Store are free and developers pay Apple nothing.
“And for the vast majority of developers who do pay Apple a commission because they are selling digital goods or services, they are eligible for a commission rate of 15%.”
