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Landmark legal action aims to force Apple to cut its controversial 30% commission on App Store purchases and to compensate UK iPhone and iPad users for years of alleged overcharging
Alleges Apple s 30% surcharge is in breach of European and UK competition laws and that Apple is abusing its dominant position in the app market at the expense of ordinary people
Class action seeks estimated damages of up to £1.5 billion for UK users of the App Store
Argues that people who buy apps and make digital purchases in apps (not app developers) are at the front of the line for compensation from Apple
Apple Is Sued Again: Compensation May Exceed $2 Billion
Apple is facing a class action lawsuit in London. The company is accused of charging nearly 20 million British customers excessive fees on App Store purchases. This is another legal dispute that Apple has encountered around the world.
The plaintiff said in a press release on Tuesday that Apple’s 30% standard percentage is “excessive” and “unlawful”. The lawsuit was filed with the London Competition Appeals Court on Monday, requiring Apple to compensate British iPhone and iPad users for years of persistently high fees. Apple responded that the lawsuit has no legal basis.
“Apple is abusing its dominance in the app store market, which in turn impacts U.K. consumers,” said Rachael Kent. She is the lead claimant in the case and a professor at King’s College London. Also, she teaches how consumers interact and depend upon digital platforms.
May 11, 2021 02:54 EDT with 12 comments
Apple s legal battles over its competition practices in many parts of the world keep piling up. In early 2019, the U.S. Supreme Court ruled that iPhone users were entitled to file a lawsuit against Apple due to the 30% revenue cut from purchases made on the App Store
Today, a new class action suit was filed against the tech giant for allegedly making exorbitant charges on approximately 20 million consumers in the UK. The lawsuit claims that the App Store s 30% tax was excessive for consumers and calls for at least £1.5 million in compensation. Under the class action suit, any iPhone or iPad user in the country who purchased apps and subscriptions as well as those who made in-app purchases through the App Store since 2015 can claim compensation.
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The claim, described by Apple as “meritless”, was filed a week into a US trial over Epic Games’ claim that Apple is running its marketplace like a monopoly, cheating developers and consumers. The separate UK claim is focused on the alleged harm caused to customers rather than developers.
Earlier this year, Apple lowered its App Store fee to 15 per cent from 30 per cent for developers who produce as much as $1 million in annual revenue from their apps and those who are new to the store.
The legal challenges come as Apple faces a backlash – with billions of dollars in revenue on the line – from global regulators and some developers who say its fees and other policies are unjust and self-serving. Last month, the European Commission sent a statement of objections to the firm, laying out how it thinks Apple abused its power as the “gatekeeper” for music-streaming apps on its store.
Apple faces UK legal claim over App Store charges
By AFP
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London - Apple is facing possible further court action over its App Store after it was accused of overcharging millions of app-purchasers in the UK.
The claim, filed by digital economy expert Rachael Kent but not yet given the greenlight by Britain s Competition Appeal Tribunal, calls on the US technology giant to repay customers.
As many as 19.6 million UK users could be eligible for compensation totalling up to £1.5 billion ($2.1 billion, 1.7 billion euros), the file claims.
It comes after Britain s competition regulator in March launched an investigation into Apple focusing on the US technology giant s use of its App Store.