Kent v Apple

On 23 October, the Competition Appeal Tribunal ruled that Apple had abused its dominant position through its App Store practices. The claim was brought by Dr Rachael Kent on behalf of around 36 million UK iPhone and iPad users, with damages estimated at around £1.5 billion.

Dr Kent argued that Apple was dominant in two markets, the distribution of iOS apps and iOS in-app payment services. The Tribunal agreed with all of her main claims. It found that Apple had completely shut out rival app stores and payment systems, tied its own payment system to the App Store and charged excessive and unfair commission of up to 30%. Those costs were passed on to users, who paid more than they should have for purchases made since October 2015. Apple has said it will appeal.

The case was brought under the UK's opt-out collective action regime, which allows one class representative to bring a claim on behalf of everyone affected unless they choose to leave the class. These claims are usually paid for by litigation funders. Kent v Apple is the first opt-out claim to succeed after a full trial, with many earlier claims settling or failing. The ruling also came a day after the CMA designated Apple as having strategic market status under the new digital markets regime, giving it power to set conduct requirements for the App Store.

Overall, the case shows that the UK class action regime can succeed against the largest technology companies, and it is likely to encourage further claims while the government reviews how the regime works.