A case has been brought against Apple at a London tribunal, accusing the tech giant of abusing its dominant position by imposing a 30% commission on App Store transactions. This practice allegedly forced nearly 20 million iPhone and iPad users in the UK to pay inflated prices, amounting to an estimated £1.5 billion ($1.8 billion), according to a Reuters report.
Apple has dismissed the lawsuit as “baseless,” stating that its iOS ecosystem is designed to ensure user security and privacy. However, the claimant, Rachel Kent, argued that Apple is reaping “excessive profits” through the App Store while restricting competition in the market.
The plaintiff’s legal team contended that Apple’s monopolistic control has compelled users to incur additional expenses. In response, Apple asserted that 85% of developers pay no commission and benefit significantly from its system.
This lawsuit marks the first major class action under the UK’s Competition Appeal Tribunal and is expected to last seven weeks. Apple’s Chief Financial Officer Kevan Parekh is anticipated to testify during the hearings.
