Home Tech Apple to face court over allegations it overcharged UK users on the App Store

Apple to face court over allegations it overcharged UK users on the App Store

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Apple to face court over allegations it overcharged UK users on the App Store

Apple will appear in court on Monday accused of overcharging UK customers through its App Store. The lawsuit alleges that the company is abusing its dominant position in the app market and that its 30% commission violates UK and European competition laws.

The lawsuit is brought by Dr Rachael Kent, an academic at King’s College London, on behalf of herself and 19.6 million other iPhone and iPad users in the UK. It is the first of numerous cases against big technology companies that will be brought before the Competition Appeal Tribunal in the coming months.

Kent claims the App Store made $15bn (£12bn) in revenue last year while spending £100m on operating costs, and that users are being overcharged because they don’t have another option.

She said: “The App Store was a brilliant gateway to a range of interesting and innovative services that millions of us found useful, including me. But 13 years after its launch, it has become the only gateway for millions of consumers. Apple jealously protects access to the world of apps and charges completely unjustified entry and usage fees.

“This is the behavior of a monopolist and is unacceptable. Usage of apps by everyday people 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 30% rent for much of what we pay for our phones, especially when Apple itself is blocking our access to platforms and developers that can offer us much better deals. That is why I am taking this measure.”

In a statement, Apple rejected the claim, saying the allegations were “baseless” and that the company had not violated any laws.

“We believe this claim is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits that the App Store and Apple’s valuable technologies have brought to the UK’s innovation economy.

“The fees charged by the App Store are very similar to those charged by all other digital marketplaces. In fact, 85% of the apps in the App Store are free and developers pay nothing to Apple. And for the vast majority of developers who pay a commission to Apple because they sell a digital good or service, they are eligible for a 15% commission rate.”

The court will hear opening arguments Monday morning and the trial is expected to last seven weeks.

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