Smartphone giants face £1.5bn lawsuit over app charges

Apple is facing a demand to pay billions of pounds in consumer compensation after being accused of overcharging users by up to 30% on its App Store.

A UK class action claims Apple’s restrictive policies – which limit app developers to using its own payment systems – are generating “excessive” profits for the company, leading to customers paying more than they should.

The lawsuit aims to represent almost 20 million people in the UK who spent money in the App Store, and seeks damages of up to £1.5bn.

Katherine Hart, lead officer at the Chartered Trading Standards Institute, said Apple customers in Scotland will be watching the case with interest.

She said: “It always pays to compare products before buying instead of just going with a big brand name, as more competitive deals can often be found elsewhere.”

The claim, filed in the Competition Appeal Tribunal, says anyone with an iPhone or iPad who paid for apps or made in-app purchases within the UK version of the App Store in the last five-and-a-half years could be entitled to a payout if the action is successful.

Dr Rachael Kent, an expert in the digital economy who is leading the claim, said: “Apple guards access to the world of apps jealously, and charges entry and usage fees that are completely unjustified.”

Apple has dismissed the action as “meritless”. It denies overcharging and said it “welcomes the opportunity to discuss with the court our commitment to consumers and the many benefits the App Store has delivered to the UK’s innovation economy”.