Apple Confronts New Billion-Dollar ‘Apple Tax’ Lawsuit in the UK

Apple is currently facing a substantial lawsuit in the UK, where a court has allowed a claim of nearly $1 billion by 1,500 local developers to proceed. These developers are contesting Apple’s high commission fees—commonly referred to as the “Apple tax”—which can reach up to 30% on app and content sales. This lawsuit addresses Apple’s dominant position in the app distribution market for its devices, accusing the company of overcharging.

 

The debate intensified when Apple argued that UK developers should only be able to bring claims for transactions made through the UK App Store. However, the judge dismissed this argument, indicating that the imposition of the Apple tax on transactions via non-UK storefronts still affects UK-based developers.

 

This legal challenge is not isolated. In the European Union, Apple has been compelled to allow alternatives to its App Store and to enable developers to use their payment processing methods, slightly reducing the Apple tax. Despite these changes, major tech companies like Microsoft, Meta, and X (formerly Twitter) have supported the ongoing legal challenges, criticizing Apple for restricting developers from informing customers about alternative, often cheaper, payment options available directly through their websites.