- £1.5 Billion Victory for UK Apple Users: Landmark Class Action Finds App Store Fees Unlawful
- Dr Rachael Kent Wins Historic Case Against Apple in £1.5 Billion Collective Action
- In a landmark legal victory for UK consumers, the Competition Appeal Tribunal has unanimously ruled that Apple unlawfully overcharged millions of iPhone and iPad users through excessive App Store fees over more than a decade.
- The decision paves the way for £1.5 billion in compensation to be returned to nearly 36 million UK consumers and businesses, making this the first collective action of its kind against a global tech giant and one of the richest companies in the world.
- The case, Kent v Apple, was brought by Dr Rachael Kent, Senior Lecturer at King's College London, who made history as the first female Class Representative in the UK's collective action regime.
- Dr Kent brought the claim on behalf of UK consumers and businesses who paid inflated prices on the App Store because of Apple's unlawful conduct. The Tribunal found that Apple's dominance of the App Store allowed it to shut out competition, stifle innovation and impose inflated fees on app developers costs that were ultimately passed on to users.
- Apple has abused its dominant position in imposing unlawful levels of commission on purchases of apps, app subscriptions and in-app purchases within apps in its App Store.
- The UK Competition Appeal Tribunal found that Apple's practices eliminated all competition on iPhones and iPads for app stores and app purchases; and Apple's 30% commission charged on purchases in the App Store is excessive and breaches UK and EU competition laws.
- Dr Kent's action against Apple is the first case brought under the UK's collective action regime to reach a successful conclusion at trial.
- This is a great outcome for UK consumers and businesses and highlights the importance of the collective actions regime for UK consumers and businesses. Without this regime, millions of UK consumers and businesses would otherwise not be able to access justice and obtain redress from Big Tech giants like Apple for illegal conduct.
- As the Tribunal found, "Justice requires that the damages be quantified for the twin reasons of vindicating the claimant's rights and exacting appropriate payment by the defendant to reflect the wrong done. In collective proceedings, the second reason is fortified by the perception that anti-competitive conduct may never be effectively restrained in the future if wrongdoers cannot be brought to book by the masses of individual consumers who may bear the ultimate loss from misconduct which has already occurred
The Competition Appeal Tribunal has found unanimously in favour of Dr Rachael Kent; finding that Apple has abused its dominant position by unlawfully excluding rivals and charging unlawfully high fees on purchases of apps, app subscriptions and in-app purchases made by UK iPhone and iPad users, resulting in losses over a ten year period of around £1.5 billion.
In doing so, the Tribunal found that "In our view, [Apple's] restrictions cannot sensibly be justified as being necessary or proportionate to deliver the benefits which Apple puts forward as flowing from its objective of an integrated and centralised system. On the contrary, the competition which would exist absent the restrictions is in our view much more likely to deliver the benefits that consumers want, in the form and at the price point they want them
The Tribunal's findings for Dr Kent join a myriad of regulatory findings and lawsuits worldwide concerning Apple's App Store practices. Apple's commission rates, the exclusion of competing app stores from Apple's devices and restrictions on developers have been the subject of recent judgments in Australia, the US, and investigations by regulators in South Korea, India, Australia, the Netherlands and elsewhere. In the UK, the Competition and Markets Authority yesterday designated Apple (and its App Store) as having Strategic Market Status, enabling the CMA to impose requirements on Apple aimed at increasing competition, addressing issues like the app store practices and fees charged by Apple for purchases in its App Store along with interoperability.
For more details about the claim, and to check if you or your business is included in the class, visit: https://www.appstoreclaims.co.uk/Apple.
Dr Kent's claim, and today's ruling
The Competition Appeal Tribunal has found in favour of Dr Kent on all aspects of her claim. The Tribunal concluded that users have been overcharged for buying apps, paying for subscriptions to apps and making in-app purchases of digital content in popular apps such as YouTube, Tinder, Fortnite and Candy Crush and many others.
Typically, 30% of the purchase price for an app, app subscription or in-app purchase goes straight to Apple. This is because Apple requires all app purchases to be routed through its own App Store payment system, allowing Apple to impose its 30% commission. Apple has blocked developers' ability to offer alternative payment systems leading to iPhone and iPad users paying more than they would have done otherwise.
Dr Rachael Kent, the class representative in the action, said:
"This is a landmark victory not only for App Store users, but for anyone who has ever felt powerless against a global tech giant. The Tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years and that up to £1.5 billion should now be returned to UK consumers and businesses.
"Every in-app purchase, subscription, and paid download was inflated by Apple's anti-competitive practices. Those unfair fees have added up to billions for the world's richest company, and less choice and innovation for everyone else.
"This case proves that the UK's collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account. Today's ruling sends a clear message: no company, however wealthy or powerful, is above the law."
Lesley Hannah, Partner at legal firm Hausfeld Co LLP, who is leading the litigation, said:
"We are absolutely delighted to have helped Rachael secure a victory against Apple on behalf of millions of UK App Store users who have been paying inflated prices for their apps for at least the last decade. The whole purpose of competition law is to ensure fairness and to prevent companies exploiting their market power."
"Apple illegally kept rivals out of the market in order to prevent their customers being able to use rival app stores and save money. This case is a paradigm example of the importance of the collective action regime. No one could have brought a case like this against such a powerful company on their own. We need the regime and class representatives like Dr Kent to protect UK consumers and businesses from illegal, anticompetitive action by companies like Apple."
Class members: Who will receive compensation
Any UK user of an iPhone or iPad who purchased paid-for apps, subscriptions or made in-app purchases of digital content within the UK storefront of the App Store at any point since 1 October 2015 is potentially entitled to compensation from Apple for its anti-competitive practices. The purchases must have been made on iPhone and/or iPad devices.
All such purchasers are automatically included within the claimant class. Device users can check their eligibility for compensation by logging into their App Store account and checking their "Purchase History".
Further information
Dr Kent's claim concerns the purchase of apps, subscriptions for apps and in-app payments for digital content on iPhones and iPads which attract a commission of 30% payable to Apple. This includes purchases in popular apps, including YouTube, Tinder, Candy Crush, Fortnite and many others. The commission did not apply to apps providing physical goods or services such as purchases from Deliveroo or Uber.
Dr Kent is represented by Lesley Hannah, Sofie Edwards, Kio Gwilliam, Emma Poland, Jonathan Amior, Natalie Jukes, Jake Henderson, Abigail Masters, Kazi Elias and Daniela Del Rio at law firm Hausfeld Co. LLP, together with barristers Mark Hoskins KC and Matthew Kennedy from Brick Court Chambers and Tim Ward KC, Michael Armitage and Antonia Fitzpatrick from Monckton Chambers.
Dr Kent also instructed expert economists Dr Hal Singer from EconOne and Derek Holt from AlixPartners UK LLP, expert forensic accountant Louis Dudney from AlixPartners UK LLP, expert in app development David Howell from Expert Guild LLC, expert in app security Dr Wenke Lee, from the College of Computing at Georgia Institute of Technology and expert in payment systems Francesco Burelli from Arkwright Consulting AG.
Dr Kent has been supported by a consultative group with expertise and experience in group claims management, digital markets and consumer rights matters. This group consists of Dame Elizabeth Gloster, formerly UK Court of Appeal judge; James Walker, an adviser to the Scottish government on consumer protection and founder of Resolver, which helps customers resolve complaints with companies; and Kevin Jenkins, former CEO of Visa UK Ltd and a veteran of the payments industry.
Notes for Editors
About Hausfeld Co. LLP
Hausfeld is a leading international law firm specialising in competition law, with significant expertise in all aspects of collective redress and group claims.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251024968605/en/
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