AppleInsider is supported by its audience and can earn commissions as an Amazon Associate and Affiliate on qualifying purchases. These partner relationships do not affect our editorial content.
Apple will face a full trial in the UK over claims it is violating competition rules by overcharging people on the App Store through its commission rate.
The London-based Competition Appeal Tribunal has rejected an attempt by Apple to limit or discard a class action complaint filed in 2021. dr. Rachael Kent, digital economy specialist and educator, is leading the action.
“I applaud the Competition Appeals Board for this clear and well-considered decision,” she said. A claim of this magnitude will always be heavily defended. The anticompetitive practices we allege against Apple go to the heart of Apple’s business strategy, and with its nearly limitless resources, it will always make this a challenging battle.”
According to the complaint of Dr. Kent, Apple’s 30% commission on app and in-app purchases is unfair. In addition, she argues that Apple’s austerity measures have forced developers to raise prices and push costs down to consumers.
In a court hearing in May, Apple attempted to challenge Kent’s claim that the 30% cut is unfair and excessive on the grounds that it applied the wrong legal test. However, the court rejected all of Apple’s arguments.
“We do not accept Apple’s argument that the pleadings reveal a legal error or flawed approach, either with regard to the proper legal test for the abuse or for the consideration of economic value in that exercise,” said court chairman Ben Tidswell.
This isn’t the first time Apple has been criticized for its 30% off App Store purchases. The company’s commission rate, which has been a standard in most app stores, has drawn opposition from lawmakers, developers and others. Most famously, Epic Games launched a massive campaign and lawsuit against Apple as a result.
Apple has since offered alternative commission rates, including a reduced 15% commission for developers selling less than $1 million on the App Store.