Millions of Apple users could receive mega payout following $1,500,000,000 lawsuit
Following a 'historic' decision in UK courts, Apple could now be forced to pay up to £1.5 billion ($2 billion) in damages in reference to compensation on the App Store, giving the opportunity for millions to potentially claim and even bringing about potentially massive changes to Apple devices in the future.
This is far from the first time that Apple has been hit by a hefty lawsuit, as it has previously faced legal scrutiny for the unintentional activation of Siri, claims that it sold devices with defective batteries, and the 'abuse' of Qualcomm's dominant market position.
The latest legal challenge could be the most significant on multiple fronts though, as it not only has the potential to result in an eye-watering payout, but it represents a major first in UK courts that could even change how the App Store works on Apple devices for good.
Why has Apple been sued?
As reported by the BBC, the subject of the lawsuit relates to claims that Apple abused its dominant position by charging "excessive and unfair" prices on the app store, relating to the 30% commission that it enforces for developers.
What is implied here is that this percentage cut has forced developers to raise the prices of their apps and in-app purchases to compensate, and the lack of any alternative storefront forces consumers into artificially paying more.
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The Competition Appeals Tribunal has sided with the claimants in this lawsuit, with the case pursued by Dr Rachael Kent on behalf of 36 million iPhone and iPad users in the United Kingdom, and her lawyers have argued that it is the first case to successfully be brought under the country's collective action regime.
It has been called a "landmark victory" by Dr Kent, with the academic adding "not only for App Store users, but for anyone who has ever felt powerless against a global tech giant. Today's ruling sends a clear message: no company, however wealthy or powerful, is above the law."
How has Apple reacted to the decision?
Apple has 'strongly disagreed' with the Competition Appeals Tribunal's decision, maintaining that it only charges this commission on paid apps and in-app purchases, which 85 percent of App Store interactions aren't subject to.
It has launched an appeal to the decision, claiming that "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 App Store faces vigorous competition from many other platforms — often with far fewer privacy and security protections."
One key part of this ruling is that it could force Apple to allow rivals and other developers to operate their own app stores on Apple devices, as that would break from the allegedly anti-competitive nature that has played a part in this apparent forced price increase for consumers.
Who can claim for compensation?
Of course, what will interest most people when it comes to this lawsuit however is the possibility for claiming your share of the £1.5 billion compensation pot, and Dr Kent's lawyers have outlined exactly who should be entitled if Apple's appeal is unsuccessful.
"Any UK user of an iPhone or iPad who purchased paid-for apps, subscriptions or made in-app purchases of digital content within the UK storefront of the App Store at any point since 1 October 2015 is potentially entitled to compensation from Apple," lawyers at Hausfeld & Co. LLP explain.
You need to have made these purchases on an iPhone and/or iPad in order to be eligible too, but more information will be revealed once the case has reached its official conclusion.
Additionally, it's unclear how much money each individual would be entitled to, as it could depend on the number of claimants and whether it scales on how much you spent via the aforementioned methods, but if the £1.5 billion pot was split equally across 36 million that Dr Kent is representing then that would result in around £41.66 each.