As many as 19.6 million users could be eligible for compensation, with damages of £1.5bn sought

AppleAs many as 19.6 million users could be eligible for compensation, with damages of £1.5bn sought
Tue 11 May 2021 02.38 EDT
Apple is facing a billionpound legal claim after being accused of breaking UK competition law by overcharging millions of people for apps on its App Store.
The tech company has been accused of deliberately shutting out the competition in the store and forcing people to use its own payment processing system, generating excessive profits for itself in the process.
The claim, which is being brought on behalf of potentially millions of Apple users in the UK, has been filed in the competition appeal tribunal and calls for Apple to repay UK customers it says have been overcharged because of the companys practices, with damages of up to £1.5bn being sought.
It says as many as 19.6 million UK users could be eligible for compensation.
The claim argues that Apples policy of forcing developers to use its payment systems for in-app purchases and taking up to 30% commission on those transactions is unfair.
Apple is the subject of a court case in the US brought by the Fortnite maker Epic Games, which has accused the iPhone maker of using the App Store and the 15% to 30% commission it takes on in-app purchases as a way of stifling competition.
The UK collective action has been brought by Dr Rachael Kent, an expert in the digital economy and a lecturer at Kings College, London, who claims that because the App Store is the only way to get apps on to an iPhone or iPad, it is acting like a monopoly.
The App Store was a brilliant gateway for a range of interesting and innovative services that millions of us find useful, myself included, she said. But 13 years after its launch, it has become the only gateway for millions of consumers.
Apple guards access to the world of apps jealously, and charges entry and usage fees that are completely unjustified.
This is the behaviour of a monopolist and is unacceptable.
The claim says any UK user of an iPhone or iPad who purchased paid apps, paid subscriptions or made any other in-app purchases within the UK version of the App Store since 1 October 2015 could be entitled to compensation over the firms anti-competitive practices.
There have been growing concerns raised about the App Stores policies in recent months. In April, the European Commission charged Apple with abusing its dominant position in the music streaming market with App Store rules on in-app payments, following a complaint by Spotify.
Apple has not yet commented on the new UK legal action but has previously defended the App Store as an engine of economic growth, creating jobs and other opportunities for developers.
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