On January 13, 2025, a class action lawsuit against tech giant Apple officially opened at the UK Competition Appeal Tribunal on Monday, the first trial in a series of antitrust lawsuits launched by the UK against large technology companies. Apple is accused of charging "excessive and unfair" fees for software downloaded from its App Store and faces legal claims of up to £1.5 billion.
Unless the two sides can reach a settlement at the last minute, the seven-week trial will be in full swing. The plaintiffs accuse Apple of abusing its dominant position in the market and charging up to 30% commissions on purchases on the App Store market. The trial of this case has also attracted attention to a series of legal challenges faced by large technology companies around the world, and Apple's new chief financial officer Kevin Parekh will also testify in court.
In the United States, Apple has faced an antitrust lawsuit from the Department of Justice over its App Store rules. However, Apple has been largely unaffected by its legal dispute with Fortnite developer Epic Games over the App Store, which began in 2020 and ended early last year.
The class action against Apple was brought by plaintiffs representing millions of British consumers, who say Apple has created a monopoly by forcing developers who create software for devices such as the iPhone and iPad to use its own App Store to distribute apps. The plaintiffs are seeking £1.5 billion in damages from Apple, claiming that the excessive commissions it charges developers are ultimately passed on to consumers who incur additional costs when they purchase software or make in-app content or digital service purchases.
The plaintiffs' lawyers, led by Mark Hoskins KC and Tim Ward KC, are expected to argue that Apple has made "huge" profits from its commission policy, far higher than if the software was also available on third-party competitors to the App Store.
Although Apple's iOS system faces competition from Google's Android system, the plaintiffs argue that Apple has consolidated market power in its device and software "ecosystem". In response, Apple said the lawsuit was "without merit" and pointed out that the commissions it charges are similar to those prevailing in digital markets. Apple also stressed that most apps are available for free and that the vast majority of developers are eligible for a discounted 15% commission under rules for small businesses.
Apple is expected to argue that the plaintiffs’ definition of the market is too narrow, including only iOS apps, which do not dominate the broader market for digital transactions and devices. Apple is also likely to reiterate the rationale for its commission policy, pointing to its extensive investments in the platform, including payment processing, developer tools, security reviews, marketing and curation.
The outcome of the trial will have a profound impact on antitrust litigation in the global technology industry, and antitrust lawyers and the litigation financing industry that supports such cases will closely watch the trial process to judge the success prospects of several other antitrust lawsuits against technology groups such as Alphabet, Microsoft and Meta
