20 million iPhone users could be eligible for compensation as Apple face £1,500,000,000 lawsuit for overcharging
It's a good job that Apple is one of the biggest companies in the world because it could soon be hit hard in the pocket over a looming lawsuit.
The tech giant has come a long way from its early days making the Apple I in Steve Jobs' family garage, and in 2025, it's best known for the iPhone.
Even if you're an Android die-hard, you've got to admit the iPhone has taken the world by storm since it first went on sale in 2007.
The tech giant has continued to churn out the phones and is heading into a new era with iOS 18 and the release of Apple Intelligence.
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Unfortunately, Apple's impressive bank balance might've come at a cost to consumers, with the company about to be embroiled in a seven-week trial over its App Store commission.
Apple and Epic Games famously went to war over the former's 30% cut of in-store purchases, and as reported by The Mirror, academic Dr Rachael Kent has brought a £1.5 billion ($1.85 billion) lawsuit forward at the Competition Appeal Tribunal.
Kent claims Apple's 30% commission is in breach of competition laws. She says that many consumers aren't aware that Apple is earning off the back of purchases and maintains that it's making the most of its position at the top of the market: "Many consumers wouldn’t know this is happening.
“In-app purchases can only be made on the App Store but Apple being able to charge a high commission on these means they are shutting off competitors and overcharging millions of customers.”
While Kent agrees that Apple is an 'amazing innovator', she adds: "Operating in a certain way for so long doesn’t mean you can charge high rates of commission due to being the dominant market player."
Apple has responded to the case and branded it 'meritless': "The commission charged by the App Store is very much in the mainstream of those charged by other digital marketplaces."
The California-based firm has also been accused of locking 40 million UK customers into using iCloud to store their data. Apple has responded saying: "Our users are not required to use iCloud."
The claim applies to anyone who made an iPhone or iPad purchase on the UK App Store between October 1, 2015, and November 15, 2024. Unfortunately, this only applies to those in the UK.
Those purchases don't just include in-app purchases but extends to paid apps and subscriptions.
Anyone applicable will be automatically opted-in, but if successful, they'll have to come to claim their compensation. As Kent alleges 20 million Brits have been hit by Apple (and is seeking £1.5 billion), customers could be eligible for around £75/$92 each.
Even though Apple maintains there's nothing to the lawsuit, it could be a costly one if it loses.