This is a high-risk lawsuit for Apple. Not only because it could cost him up to £1.5 billion (€1.8 billion). But also because a defeat could set a precedent and give ideas to other plaintiffs. From Monday, the apple group faces a first collective action before the British Competition Tribunal (CAT). He is accused of having implemented anti-competitive practices to block the downloading of applications on his iOS system, thus allowing him to collect commissions “excessive and unfair” to the detriment of consumers. Accusations “unfounded”retorts the company, which puts forward the same arguments which have allowed it to be relatively spared until now, in particular before the American justice system.
Closed ecosystem – The case centers around two restrictions imposed by Apple. First, the exclusivity granted to its App Store, the only store allowing you to download applications on an iPhone and an iPad. Then, the obligation for developers to use its payment system. This closed ecosystem has prevented the emergence of competitors, explains the British law firm behind the class action. The developers thus had no other alternative than to pay commissions of 15% or 30% to the Cupertino company on each paid download, each microtransaction and each subscription taken out from an application. Costs which were passed on to the final price paid by the consumer. In 2021, the damage was estimated by the plaintiffs at between 500 million and 1.5 billion pounds.
“Safe and secure” – These accusations are not new. In the United States, they notably gave rise to a lawsuit against Epic, the publisher of the mobile game Fortnite. In Europe, provisions of the Digital Markets Act, which Apple is trying to circumvent, should make it possible to respond to this. And in the United Kingdom, the competition watchdog could take similar measures. The group’s defense is mainly based on three arguments. First, he assures that it cannot be considered a monopoly, because the smartphone market is dominated by Google’s Android system. Then, he emphasizes that the level of his commissions is similar to that practiced by other players. Finally, Apple justifies the ban on other application stores by the desire to create a “safe and secure environment” for its users.
What the beginning? – The trial is expected to last seven weeks. Several senior Apple executives, including the CFO, are expected to take the helm. This is the first time in its history that the CAT has examined a class action launched against a technological giant. And probably not the last. In December, its judges allowed another case to proceed, also centered around the App Store but this time brought on behalf of app developers. In November, the consumer association Which? also filed a complaint, accusing the company of having “locked” its users into its iCloud storage service. Amount claimed: 3 billion pounds (3.6 billion euros). A defeat for Apple in this first trial could also weaken Microsoft, Google and Meta, also targeted by proceedings before the CAT.
To go further:
– Apple, first giant sanctioned under the DMA?
– US attacks Apple’s “monopoly power”
