Apple is set to appear in court on Monday facing allegations of overcharging UK customers through its App Store. The complaint accuses the company of exploiting its dominant position in the app market and violating European and UK competition laws with its 30% fee.
The lawsuit against Apple has been filed by Dr. Rachel Kent, a King’s College London academic, on behalf of herself and approximately 19.6 million other iPhone and iPad users in the UK. This is the first of several legal actions expected to be brought against major tech companies in the Competition Appeal Court in the upcoming months.
Dr. Kent argues that despite the App Store generating $15bn (£12bn) in revenue last year, operating costs were only £100m, indicating that users are being excessively charged due to lack of alternative options.
She stated: “The App Store has long been a valuable platform for access to various services, but with Apple’s dominance, users are now facing excessive charges and limited choices. This monopolistic behavior is unjustifiable, especially as our reliance on apps has grown significantly.”
Apple has denied the allegations, calling them baseless and asserting compliance with laws.
The company’s statement declared: “We believe this lawsuit lacks merit and look forward to showcasing our commitment to consumers and the positive impact of the App Store on the UK innovation economy.”
The court will commence with opening statements on Monday morning, and the trial is anticipated to span seven weeks.
Source: www.theguardian.com
