UK lawsuit against Apple for $1 billion

Tech giant Apple is facing a significant legal challenge in the United Kingdom, as it has been slapped with a $1 billion lawsuit.

Application developers have filed a significant class action lawsuit, accusing a company of monopolistic behaviour.

Over 1,500 app developers in the UK have filed a class action lawsuit against Apple, the tech giant, seeking £785 million ($1 billion) in damages. The lawsuit is centred around the fees Apple charges on its App Store.

Developers have filed a lawsuit with the Competition Appeal Tribunal, alleging that Apple's 30% fee on in-app sales hinders competition.

According to Sean Ennis, a professor at the University of East Anglia and a former economist at the OECD, Apple's fees for app developers are high because they have a monopoly on distributing apps to iPhones and iPads. Ennis has filed a lawsuit on behalf of the developers, claiming that Apple's charges are excessive.

The charges are considered unfair and are seen as abusive pricing. Ennis alleged that they cause harm to both app developers and app buyers.

Apple has denied the accusations, stating that their App Store fees are fair and help maintain a good user experience. The company has indicated that it follows all the applicable laws.

Apple imposes a commission fee ranging from 15% to 30% for using in-app payment systems. The tech company's service business has been consistently growing, with revenue increasing by around $20 billion every quarter in recent years.

The company's practices have caught the attention of antitrust regulators in multiple countries. Apple was fined €13 billion ($14.9 billion) by the European Commission in 2021 for engaging in anti-competitive behaviour on its App Store. The US Department of Justice has filed a lawsuit against Apple, alleging that the tech firm has taken advantage of its dominant position in the smartphone market.