Skip to main content

Market Overview

Apple Faces Class Action Over Allegations Of Overcharging UK App Store Users

Share:
Apple Faces Class Action Over Allegations Of Overcharging UK App Store Users

Apple Inc (NASDAQ: AAPL) is facing a class action in London for allegedly overcharging about 20 million U.K. customers ON App Store purchases, according to a Bloomberg report on Monday.

What Happened: The complaint, filed before Competition Appeal Tribunal, calls for the California-based company to compensate U.K. iPhone and iPad users for charging a 30% standard fee, which it deems is “excessive” and “unlawful.” Bloomberg noted that the class action could cost Apple over $2 billion in payments.

The latest suit was filed a week into another U.S. trial over Fortnite maker Epic Games antitrust allegations that Apple is running its marketplaces like a monopoly, cheating developers and consumers.

Lead claimant Rachael Kent, a professor at King’s College London, said Apple is abusing its dominant position in the app store market, which in turn hurts U.K. consumers. 

Apple introduced a new program last year that lowered its App Store fee to 15% from 30% for developers earning up to $1 million a year from their apps and those who are new to the store.  

Why It Matters: Apple has described the suit as “meritless” and said the commission charge is in line with other digital marketplaces, according to the report citing an email statement from the tech giant.

See also: How To Buy Apple Stock

The iPhone maker claims 84% of apps on the App Store are free and developers are not charged while a majority of developers who pay Apple a commission is because they are selling a digital good or service and they are eligible for a commission rate of 15%, the company said. 

Price Action: Apple shares closed 2.58% lower at $126.85 on Monday. 

Read Next: iPhone 12 Production Sees Over 50% Slump At Apple Supplier Foxconn's Factory In India With COVID-19

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Antitrust App Store iPhone Tim CookNews Legal Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com