Apple is heading to court in the UK over claims it unfairly charges app developers high fees, with a lawsuit seeking a whopping £1.5 billion (about $2.2 billion CAD) in damages.
The case begins Monday and is the first of its kind in the UK targeting Big Tech under competition laws, reports the Financial Times. The nation’s Competition Appeal Tribunal will take a look at the lawsuit.
The class action lawsuit alleges Apple uses its App Store as a monopoly, forcing app developers to pay commissions of up to 30% on purchases made through the store. Claimants argue these costs are then passed on to consumers by developers.
The class action is being led by Rachael Kent, a lecturer at King’s College London, while lawyers Mark Hoskins KC and Tim Ward KC are representing the claimants.
Apple denies the allegations, calling the lawsuit “meritless.” It says most apps are free and that smaller developers pay only a 15% commission. Apple also argues that its fees are fair because they fund services like security, marketing, and tools for developers.
The trial is expected to last about seven weeks, with Apple’s new CFO Kevan Parekhset set to testify. The outcome could have major implications for other tech companies facing similar antitrust lawsuits. Let’s wait and see what happens on Monday.
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