Apple's UK users deserve app price compensation, claim says | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Saturday
May 17, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SATURDAY, MAY 17, 2025
Apple's UK users deserve app price compensation, claim says

Tech

TBS Report
13 May, 2021, 12:00 pm
Last modified: 13 May, 2021, 12:11 pm

Related News

  • Epic Games' Fortnite not available on iPhones in EU and the US
  • Apple blocks access to Fortnite in US, EU, Epic Games says
  • Dhaka North provides Tk1.5 lakh to owners of 3 crushed battery-run rickshaws
  • Apple considers raising iPhone prices, WSJ reports
  • Mujibur new president, Mahmuda general secretary of Bangladesh Law Society UK

Apple's UK users deserve app price compensation, claim says

The case, filed with the UK Competition Appeal Tribunal (CAT), alleges Apple's 30% commission on app sales is an abuse of dominance and unlawful

TBS Report
13 May, 2021, 12:00 pm
Last modified: 13 May, 2021, 12:11 pm
File Photo of Apple logo. Photo: Michael Nagle/Bloomberg
File Photo of Apple logo. Photo: Michael Nagle/Bloomberg

Apple has faced a London lawsuit over claims it overcharged nearly 20 million UK customers for App Store purchases, yet another legal headache for the tech giant fighting lawsuits across the world.

Millions of Apple's UK customers should be compensated for breaches of competition law, a legal action claims, reports BBC.

The case, filed with the UK Competition Appeal Tribunal (CAT), alleges Apple's 30% commission on app sales is an abuse of dominance and unlawful.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Organisers are aiming to include nearly 20 million UK users in the collective action, if it is approved.

Those behind the claim say they intend to seek damages of up to £1.5bn. Apple said the legal action was "meritless".

Collective action

While the UK does not have the same kind of class-action legal structure as the US, so-called "optout" claims have been allowed in the CAT since 2015, meaning all affected people could be covered unless they decide to exclude themselves.

And anyone in the UK who has bought paid apps, paid subscriptions, or other in-app purchases on an iPhone or iPad since October 2015 is included in the claim.

However, such a collective action needs to be approved by the tribunal before proceeding.

While the 30% Apple cut on sales is already facing challenges from other companies, the group behind this claim say it is customers who have ultimately paid the fee.

It alleges:

  • Apple deliberately shuts out potential competition
  • it requires ordinary users to use Apple's own payment-processing system
  • doing so generates "unlawfully excessive levels of profit"
  • the charges are "an unlawful raid on Apple's customers' purses"

King's College London digital-economy lecturer Dr Rachael Kent, who is taking the case to the tribunal and representing all those affected, said Apple "charges entry and usage fees that are completely unjustified".

"This is the behaviour of a monopolist and is unacceptable," she said.

Apple's estimates of its costs for running the App Store were "just $100m" (£71m) - but it had made $15bn (£10.6bn) last year.

"Apple achieves this by slapping unjustified charges on its users," Dr Kent said.

"It would not be able to impose these exorbitant charges if competitor platforms and payment systems were allowed to compete."The rest of the team behind the case includes law firm Hausfeld and Co and Vannin Capital.

Vannin would be paid - a proportion of the total compensation, from "damages that are left unclaimed" - only if the case succeeded, the group said, "putting their money at risk for a lengthy legal battle with one of the wealthiest corporations in the world".

"Claimants will not lose out," the group added.

In a statement, Apple said: "We believe this lawsuit is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits the App Store has delivered to the UK's innovation economy."

It highlighted that the 30% cut is "very much in the mainstream of those charged by all other digital marketplaces", and said 84% of apps on its App Store were free - so developers paid nothing. It also argued that the "vast majority" of developers paid a commission of 15%, in an apparent reference to its recent decision to cut rates on the first $1m.

Legal battle

Apple's competitor Google also charges a 30% fee, along with several other digital platforms.

But the group said it was "not in a position to comment on Google at the moment".

Apple has faced a backlash from several developers in the past year, along with scrutiny from an EU competition investigation and the House Judiciary Antitrust Subcommittee in the US.

It is embroiled in a major US-based legal battle with Epic Games, which says Apple's policies prevent it competing on price.

And earlier this year, the competition tribunal rejected Epic's attempt to bring that case into the UK, while allowing a similar one against Google to proceed.

Top News / World+Biz

Apple / UK / app price / compensation

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • One of the accused being escorted by police at the tribunal premises on 27 April. Photo: Collected
    Main accused gets death penalty in Asiya rape, murder case as court completes trial in 20 days
  • Representational Image. Photo: Collected
    Magura child rape: Asiya’s mother unhappy over acquittal of 3 accused
  • Illustration: Abidur Rahman/TBS
    Timeline: Verdict of Magura child Asiya rape in 20 days

MOST VIEWED

  • The workers began their programme at 8am on 23 April 2025 near the Chowrhas intersection, Kushtia. Photos: TBS
    BAT factory closure prolongs 'as authorities refuse to accept' protesting workers' demands
  • Representational image. Photo: Freepik
    Country’s first private equity fund winding up amid poor investor response
  • BGB members on high alert along the Bangladesh-India border in Brahmanbaria on 16 May 2025. Photo: TBS
    BGB, locals foil BSF attempt to push-in 750 Indian nationals thru Brahmanbaria border
  • Banks struggle in their core business as net interest income falls
    Banks struggle in their core business as net interest income falls
  • A teacher offers water to a Jagannath University student breaking their hunger strike at Kakrail Mosque intersection, as protesters announce the end of their movement today (16 May) after their demands were met. Photo: TBS
    JnU protesters end strike as govt agrees to accept demands
  • Efforts to recover Dhaka’s encroached, terminally degraded canals are not new. Photo: TBS
    Dhaka's 220km canals to be revived within this year: Dhaka North

Related News

  • Epic Games' Fortnite not available on iPhones in EU and the US
  • Apple blocks access to Fortnite in US, EU, Epic Games says
  • Dhaka North provides Tk1.5 lakh to owners of 3 crushed battery-run rickshaws
  • Apple considers raising iPhone prices, WSJ reports
  • Mujibur new president, Mahmuda general secretary of Bangladesh Law Society UK

Features

Illustration: TBS

Cassettes, cards, and a contactless future: NFC’s expanding role in Bangladesh

19h | Panorama
Photo: Collected

The never-ending hype around China Mart and Thailand Haul

19h | Mode
Hatitjheel’s water has turned black and emits a foul odour, causing significant public distress. Photo: Syed Zakir Hossain

Blackened waters and foul stench: Why can't Rajuk control Hatirjheel pollution?

1d | Panorama
An old-fashioned telescope, also from an old ship, is displayed at a store at Chattogram’s Madam Bibir Hat area. PHOTO: TBS

NO SCRAP LEFT BEHIND: How Bhatiari’s ship graveyard still furnishes homes across Bangladesh

2d | Panorama

More Videos from TBS

Al-Ayala, the priceless cultural heritage of humanity

Al-Ayala, the priceless cultural heritage of humanity

40m | TBS World
Barcelona has overcome the setbacks and reached the pinnacle of the Spanish league

Barcelona has overcome the setbacks and reached the pinnacle of the Spanish league

2h | TBS SPORTS
Death sentence for Hitu Sheikh, the prime accused in the rape and murder case of child Achiya

Death sentence for Hitu Sheikh, the prime accused in the rape and murder case of child Achiya

3h | TBS News Updates
India is not raising tariffs, Delhi refutes Trump's claim

India is not raising tariffs, Delhi refutes Trump's claim

16h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net