London, Jan 13, (V7N) - Tech giant Apple is on trial in the UK over allegations that it abused its dominant position in the app distribution market, potentially overcharging millions of consumers. The lawsuit seeks over £1 billion ($1.8 billion) in damages.

The case, filed in May 2021 by Rachael Kent, a digital economy lecturer at King’s College London, and the law firm Hausfeld & Co, accuses Apple of breaching UK and EU competition laws by blocking rival app stores on iOS devices like iPhones and iPads.

At the heart of the complaint is Apple’s standard 30% commission on app sales and in-app purchases through its App Store, which the plaintiffs argue inflates prices for consumers. This fee does not apply to apps selling physical goods, such as Deliveroo and Uber Eats, but impacts most other apps, including services like Tinder.

Kent contends that around 20 million UK consumers who used the App Store between October 1, 2015, and November 15, 2024, may be eligible for compensation. Under UK class action laws, all affected consumers are automatically included unless they opt out.

Apple has dismissed the lawsuit as “meritless”, emphasizing that 85% of apps on its store are free and that its fees are standard across digital marketplaces. In a previous statement, the company said it was committed to supporting the UK’s innovation economy.

Globally, Apple is under increasing regulatory scrutiny. The European Commission recently accused the company of restricting developers from guiding users to alternative purchasing channels. Apple has since agreed to loosen its rules in the EU, allowing users to delete the App Store and use competing platforms.

The trial at the Competition Appeal Tribunal in London is expected to last seven weeks, with potential implications for Apple's operations in the UK and beyond.

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