Apple Among the First Big Tech Firm to Face Class Action Over App Store Fees

Competition Appeal Tribunal grants restricted document access in Apple app fees lawsuit: Dr Rachael Kent v Apple Inc. and Apple Distribution International Ltd

In a major case set to begin on 13 January 2025, the UK Competition Appeal Tribunal will hear a class action against Apple Inc. and its subsidiary Apple Distribution International Ltd.

The class action lawsuit, spearheaded by law firm Hausfeld, represents millions of UK consumers and app developers.

Dr Rachael Kent, a leading academic and digital markets expert, serves as the class representative, accusing Apple of charging excessive and unlawful fees on its App Store and limiting competition by enforcing its payment system.

1403/7/7/21 Dr. Rachael Kent v Apple Inc. and Apple Distribution International Ltd | Competition Appeal Tribunal

Competition Appeal Tribunal

Legal Issues at Stake

The case focuses on Apple’s alleged anti-competitive practices in its App Store, where developers are compelled to use the company’s in-house payment system.

The plaintiffs argue this restriction not only inflates costs for developers but also leads to higher app prices for consumers.

The claim hinges on the Competition Act 1998 and EU competition rules, which prohibit abuse of a dominant market position.

Apple has consistently charged a 30% commission on app sales and in-app purchases, a figure the plaintiffs claim is unjustifiable in a fair and competitive market.

Dr Kent and her legal team argue this fee stifles innovation and prevents smaller developers from thriving, while consumers bear the financial burden.

The Class Representative’s Role and the Confidentiality Ring

Dr Kent’s role as class representative has drawn attention, particularly due to her academic expertise in digital markets.

Her legal team, bolstered by a consultative group of industry experts, has faced challenges in securing access to critical documents.

The Competition Appeal Tribunal recently addressed this issue in a renewed application regarding confidentiality protocols.

Key members of Dr Kent’s team, including advisors James Walker and Kevin Jenkins, have been admitted to an "Outer Confidentiality Ring" under stringent conditions.

This ensures they can access sensitive Apple documents necessary for the case while preventing any misuse of confidential information.

The Tribunal ruled that these measures balance Apple’s concerns over protecting trade secrets with the plaintiffs’ need to prepare their case effectively.

The Broader Implications of the Case

This class action lawsuit represents the first major UK class action against a tech giant under competition law.

Its outcome could have far-reaching consequences for app store economics and how dominant platforms interact with developers and consumers.

If successful, the case may pave the way for similar lawsuits in other jurisdictions, intensifying scrutiny of big tech’s business practices globally.

Apple’s defence will likely centre on its claims that the App Store provides developers with unparalleled access to consumers while ensuring security and quality control.