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King’s College London Academic Wins £1.5 Billion Lawsuit Against Apple

Photo courtesy of Matias Cruz via Pixabay. Used under the Pixabay Content License (https://pixabay.com/service/license-summary/).

On Thursday, King’s College London (KCL) academic Dr Rachael Kent won a £1.5 billion case against U.S tech giant Apple.

Dr Kent, under the UK’s collective action regime, accused Apple of abusing its dominant market position by infringing competition law.

Dr Kent is currently a Senior Lecturer in Digital Economy & Society Education in KCL’s Department of Digital Humanities. She is also the founder of the tech-wellbeing consultancy Dr. Digital Health and host of the ‘Digital Health Diagnosed‘ podcast. Her research includes work in technology addiction, datafication and surveillance, and digital health.

Dr Kent’s Case

The case alleged two main forms of abuse:

  1. Apple imposed exclusionary practices on app developers by requiring app distribution and in-app purchase payments be process exclusively through App Store payment systems.
  2. Apple acted abusively by charging a 30% commission rate to developers, amounting to prices that are “excessive and unfair”.

The premise of the proceedings was that during the Claim Period of October 1 2015 to November 15 2024, Apple should have paid non-abusive prices in iOS distribution services and in-app payments.

Dr Kent argued that if it weren’t for anti-competitive practices, users of Apple devices would have been charged significantly lower prices for apps, app subscriptions and digital content purchases.

The estimated loss per user amounted to a figure between £27 and £75. This includes users of apps such as Fortnite, Tinder and YouTube. Accordingly, the aggregate claim for damages ranged from £1.184 to £2.237 billion.

The Competition Appeal Tribunal (CAT) ruled unanimously in favour of Dr Kent on all grounds. This is the first successful claim of this nature to be brought under the UK’s collective action regime.

Apple’s Defence

In the case, Apple justified its conduct on grounds of safety, security, privacy and efficiency. Such elements, they claimed, actively protect customers from potential predation from developers, creating a “thriving” and “dynamic” app marketplace in the UK.

In a statement made to the BBC following the ruling, Apple stated its intention to appeal the ruling. It claims the decision “takes a flawed view of the thriving and competitive app economy” and that “this ruling overlooks how the App Store helps developers succeed”.

Potential for User Compensation

According to Hausfeld & Co LLP, who represented Dr Kent, any individual who meets the following criteria could potentially be entitled to compensation:

  1. Purchased an iPhone or iPad since 1 October 2015.
  2. Used the UK storefront of the App Store.
  3. Spent money for paid-for apps, subscriptions or in-app purchases of digital content.

Shaping the Future of Big Tech

In a statement, Dr Kent described the ruling as “a landmark victory – not only for App Store users, but for anyone who has ever felt powerless against a global tech giant.”

She posited an optimistic perspective on the future on regulation of technology:

“This case proves that the UK’s collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account. Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.”

The ruling comes at a key time for tech giants. Pressure is growing internationally for greater accountability and regulation of tech companies. Currently, there are over 20 class actions active in the UK against Apple and Google, as well as parent firms Alphabet, Microsoft and Meta.

With big tech now in the hot seat for alleged anti-competitive behaviour, privacy breaches, and general claims of human rights abuse, Dr Kent’s win serves as monumental precedent for technological regulation.

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