Apple Faces £1.5B Lawsuit Over App Store Fees

A significant class-action lawsuit against Apple, alleging the tech giant overcharged British iPhone and iPad users by forcing them to pay inflated prices for apps and in-app purchases, is now unfolding in a London tribunal. The case seeks an estimated £1.5 billion (US $1.8 billion) on behalf of millions of UK consumers, marking one of the largest collective legal actions in the country’s tech sector.

Allegations of a ‘Monopoly Position’

The lawsuit, filed on behalf of around 20 million device owners, centres on Apple’s App Store commission—a fee of up to 30 percent that developers pay when selling apps or offering in-app purchases. Plaintiffs argue that Apple’s control of the iOS platform effectively creates a monopoly, allowing it to impose “excessive” charges that lead to higher consumer costs.

Rachael Kent, a King’s College London lecturer who initiated the lawsuit, claims Apple has made “exorbitant profits” by preventing iPhone and iPad owners from accessing any app marketplace other than the App Store. “Apple is not just dominant … it holds a 100% monopoly position,” said Kent’s lawyer, Mark Hoskins, during the tribunal’s opening remarks. The lawsuit spans all iOS users since 2015 and alleges Apple’s policies unfairly pushed up prices for software ranging from simple games to subscription-based services.

Apple’s Response

Apple firmly rejects these accusations, calling the case “meritless” and insisting its App Store fees reflect standard industry practices. Company lawyer Marie Demetriou told the tribunal that Apple’s integrated ecosystem provides substantial benefits—such as security, developer tools, and user privacy protections—and noted that 85 percent of developers pay no commission at all. Apple contends that imposing its framework helps maintain a consistent, secure environment. The notion that Apple must let developers freely distribute apps on its proprietary operating system, Demetriou argued, amounts to “expropriation of property rights masquerading as competition.”

Despite Apple’s position, the tribunal will examine whether its longstanding policies unduly limit competition and force developers—and by extension, consumers—to shoulder unfair costs.

A Growing Tide of Tech Lawsuits

While Apple battles this UK lawsuit, the company faces similar scrutiny worldwide. European regulators have zeroed in on its in-app purchase structures, and the U.S. court system has seen lawsuits challenging Apple’s approach to iOS distribution. The UK, in particular, has emerged as a stage for major actions against large technology corporations:

• Google faces a parallel claim over its Play Store practices.
• Meta (Facebook’s parent) and Amazon are also contending with consumer or developer-based lawsuits in British courts.

Lawyers say the outcome of this Apple case could set a precedent for how collective actions—Britain’s version of class-action lawsuits—proceed against tech giants.

Implications for Consumers and Developers

Should the tribunal side with the claimants, Apple may be forced to pay an estimated £1.5 billion in damages—funds that could potentially be disbursed as compensation to millions of iOS users. It might also prompt Apple to modify its fee structure, creating ripple effects in app marketplaces globally. For developers, a decision curtailing Apple’s commission might open the door for alternate ways to monetize apps on iOS devices or spur Apple to offer more flexible terms.

But even if Apple defeats this lawsuit, the broader question of how far governments can push back against powerful online platforms lingers. Observers note that Apple’s integrated approach has helped it maintain a high level of security and brand consistency, which customers value. Whether that rationale will withstand in-depth legal scrutiny over competition issues remains to be seen.

Looking Ahead

The tribunal has allotted seven weeks to hear arguments and evidence, including testimony from Apple executives. If it advances beyond this stage, the matter could take months—if not longer—to reach a final conclusion. In the meantime, Apple’s stock price has shown some vulnerability, dropping more than 2% as news of the lawsuit’s first hearing broke. Analysts caution the long-term financial impact depends on whether the tribunal finds Apple in breach of UK competition laws and, if so, how damages and potential reforms to the App Store are enforced.

For British consumers, this lawsuit stands as a high-profile test of collective action mechanics in tackling alleged tech monopolies. For Apple, it’s another major front in the ongoing battle over who controls—and profits from—the modern digital ecosystem. Observers will continue watching closely as Apple’s legal team mounts its defence in London over the next several weeks.