Apple Faces £1.5bn Lawsuit in UK for Overcharging on App Store
A hearing is set to commence on Monday between the lawyers of Apple Inc. over the excessive charging of users on app store termed as illegal Monopoly.
The lawsuit classified as a ‘class action lawsuit’ was filed in May 2021 against apple’s 30% charge on app store for app sales.
“A 30 percent charge that the company imposes on apps purchased through app store comes at the expense of ordinary consumers” the complainants said.
Brought by Rachael Kent, a lecturer at King’s college, London alongside the Law firm Hausfeld & Co, the report claimed that the company ‘forces’ developers who make softwares for iphones and ipads to distribute their apps through app store. It was further stated that Apple uses this style to push off other competitors forcing people to only use their system thereby making more profit.
“The commission charged by the app store are very much in the mainstream of those charged by all other digital marketplaces ” Apple referred to an argument back in 2022, currently arguing that the present claim is ‘Meritless’ .
Notably, Apple has faced several lawsuits in the past few years most of which were claims against its app store.
Furthermore, while the class lawsuit is expected to last between seven weeks at Competition Appeal Tribunal, London, there are other lawsuits against Apple currently ongoing in the UK.
Interesting however, apple’s current lawsuit type, according to the British law is expected to benefit other users who are potentially affected by the issue on the claim. They would be subject to some compensations except they decide that they don’t need it and opt out. The lawsuit covers upto 20 million users across the world.
Meanwhile, the total estimated damages from the lawsuit is about £1.5 billion ($1.8billion).