Exactly how much each Apple customer could receive after tech giant loses $1.5b lawsuit
Apple customers could receive compensation after it loses a $1.5 billion lawsuit.
Just as 2.7 million Microsoft customers hope to receive compensation after being pushed into more expensive subscription plans, Apple users are facing a similar situation.
The tech giant was taken to court in a class action lawsuit alleging it abused its dominant position in the smartphone market, claiming Apple shut out competition through its App Store and charged 'excessive and unfair' commission rates.
As a result, people who owned an iPhone or iPad between 2015 and 2024 could receive payments of up to £75.
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Dr. Rachael Kent, an academic who brought the case, argued that UK users had lost out on £1.5 billion over a ten-year period due to the inflated charges.
She represented 36 million UK customers and became the first female Class Representative in the UK's collective action legal system.
What is the lawsuit about?
According to Dr. Kent, Apple took 30% of every paid app purchase, subscription, or in-app purchase made through its App Store as commission in most cases, which directly led to higher costs for consumers.
Last week, the Competition Appeals Tribunal (CAT) ruled against Apple, finding that the company had abused its dominant position ‘by foreclosing competition in the iOS app distribution services market and the iOS in-app payment services market’.
The judges found that approximately 50% of Apple's excessive commissions were passed on to device users in the form of higher app prices.
However, Apple announced it would challenge the ruling, calling it 'a flawed view of the thriving and competitive app economy’.
A spokesperson defending Apple stated: "This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments."
The tech giant argues its commission structure is justified by the value it provides through security, payment processing, and app discovery features.
Who is eligible for compensation?
If you purchased an iPhone or iPad between October 1, 2015 and November 15, 2024 and paid for apps or in-app purchases during that time, you could be eligible for a payout.
How to check your eligibility
You can verify your eligibility by logging in to your Apple App Store account and going to 'Purchase History' in your account settings. Here, you can adjust the date range to the date range you would like.
How much could you get?
The judgment indicates individual users could claim between £27 and £75, depending on how many people ultimately come forward to claim. A hearing scheduled for next month will determine exactly how damages are calculated and distributed among eligible customers.
While individual payouts may be modest, the aggregate claim is massive. The judgment states that total damages range from '£1.184 billion to £2.237 billion (including interest).'
Meanwhile, other industry giants like Spotify and Epic Games (maker of Fortnite) have publicly blasted Apple for its heightened fees.