Apple sued over ‘exorbitant’ fees on smartphone apps

Nearly 20 million owners of iPhones and iPads could be in line for compensation if a legal action against Apple succeeds
Nearly 20 million owners of iPhones and iPads could be in line for compensation if a legal action against Apple succeeds
KATHY WILLENS/ASSOCIATED PRESS

Apple faces a £1.5 billion legal claim for allegedly overcharging iPhone owners who bought apps through its online store. The Silicon Valley giant is accused of breaking competition law by extracting “exorbitant” fees from app developers and forcing users on to its payment processing system.

Apple abused its monopoly position in smartphone apps to generate “excessive profits”, according to the claim, which has been lodged on behalf of UK-based users of its devices.

If the claim succeeds, nearly 20 million iPhone and iPad owners could be in line for compensation.

Rachael Kent, 33, an expert in the digital economy and a lecturer at King’s College London, has launched the legal action in an attempt to loosen Apple’s tight grip over how its customers buy apps.