BR100 Increased By (0.2%)
BR30 Increased By (0.41%)
KSE100 Increased By (0.07%)
KSE30 Increased By (0.23%)
AGHA 7.75 Decreased By ▼ -0.17 (-2.15%)
BECO 5.19 Decreased By ▼ -0.01 (-0.19%)
BML 58.66 Decreased By ▼ -0.59 (-1%)
BOP 33.69 Increased By ▲ 0.01 (0.03%)
CNERGY 10.61 Increased By ▲ 0.80 (8.15%)
CSIL 5.30 Decreased By ▼ -0.12 (-2.21%)
FCCL 53.74 Increased By ▲ 0.22 (0.41%)
FFL 16.46 Decreased By ▼ -0.22 (-1.32%)
FNEL 1.22 Increased By ▲ 0.01 (0.83%)
KEL 7.28 Decreased By ▼ -0.07 (-0.95%)
KOSM 5.64 Increased By ▲ 0.03 (0.53%)
LOTCHEM 29.65 Increased By ▲ 0.54 (1.86%)
MLCF 96.36 Increased By ▲ 0.86 (0.9%)
NBP 203.53 Decreased By ▼ -0.82 (-0.4%)
NCPL 56.85 Decreased By ▼ -1.39 (-2.39%)
NPL 67.31 Decreased By ▼ -0.48 (-0.71%)
OGDC 318.22 Increased By ▲ 0.28 (0.09%)
PACE 10.63 Decreased By ▼ -0.08 (-0.75%)
PAEL 41.77 Decreased By ▼ -0.06 (-0.14%)
PIBTL 16.81 Increased By ▲ 0.31 (1.88%)
PPL 220.17 Increased By ▲ 0.43 (0.2%)
PRL 49.05 Increased By ▲ 4.46 (10%)
PTC 70.01 Decreased By ▼ -0.76 (-1.07%)
SSGC 29.14 Increased By ▲ 0.21 (0.73%)
TBL 9.77 Decreased By ▼ -0.07 (-0.71%)
TELE 8.82 Increased By ▲ 0.06 (0.68%)
TPL 17.17 Increased By ▲ 0.72 (4.38%)
TPLP 12.51 Increased By ▲ 0.41 (3.39%)
TREET 22.59 Decreased By ▼ -0.21 (-0.92%)
TRG 60.22 Increased By ▲ 0.19 (0.32%)
By

LONDON: Apple 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, 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 clarifies Siri privacy stance after $95mn class action settlement

Apple is facing a separate case brought on behalf of app developers over its App Store commissions, while Google, Meta and Amazon 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 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 to impose restrictive terms on app developers and charge excessive commission, which they say is ultimately borne by consumers.

“Apple is not just dominant … it holds a 100% monopolyposition,” Kent’s lawyer Mark Hoskins said in court filings.

But Apple – which has faced mounting pressure from regulators in the U.S. and Europe over the fees it chargesthird-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 innovation by the iOS ecosystem as a whole”.

Kent’s case simply ignores Apple’s intellectual property rights, Demetriou added, describing the contention that Apple 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 chief financial officer Kevan Parekh later this week.

Comments

Comments are closed for this article.