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Apple Lawsuit: A London tribunal heard on Monday that Apple is being accused of exploiting its dominant position in the market by charging app developers an unfair 30% commission through its App Store. This practice has allegedly cost British consumers as much as 1.5 billion pounds ($1.8 billion or about Rs. 15,601 crore).

Apple is currently facing a mass lawsuit which has been brought on behalf of approximately 20 million iPhone and iPad users in the UK, who have claimed that the tech giant has overcharged them for app purchases. Apple has however refuted these allegations and has argued that the case lacks merit and overlooks the advantages the app provides with its integrated approach to the iOS operating system which puts security and privacy at the core of its operations.

The case is being heard at London's Competition Appeal Tribunal, making it one of the first mass lawsuits to come under the UK's upcoming class action framework. This case holds special importance, as there are many other potential cases against tech firms awaiting their turn. It must be noted that a similar lawsuit is going to take place against Google later this year. The case circles around the commission it charges app developers to gain access to its Play Store.

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Apple is also dealing with another lawsuit filed by app developers challenging the commission fees on its App Store. In addition, other tech giants like Google, Meta, and Amazon are facing high-profile mass lawsuits in the UK.

The ongoing case, initiated by British academic Rachael Kent, accuses Apple of reaping "exorbitant profits" by maintaining a monopoly on the distribution of apps and in-app purchases. Kent’s legal team argues that Apple's dominance in the app market allows it to impose restrictive terms on developers, forcing them to pay excessive commissions that ultimately affect consumers.

"Apple is not just dominant ... it holds a 100 percent monopoly position," said Mark Hoskins, Kent's lawyer, during court filings.

However, Apple refutes these claims. The company asserts that 85% of app developers do not pay any commission fees, which, according to Apple's legal representative, Marie Demetriou, reflects the “enormous benefits” Apple provides through its innovative iOS ecosystem.

Demetriou further argued that Kent's case fails to take into account Apple’s intellectual property rights. She described the argument that Apple should be forced to allow developers to use its technology freely as an "expropriation of property rights masquerading as competition."

As the trial unfolds, one of the key figures expected to testify is Apple's chief financial officer, Kevan Parekh, who will provide evidence later this week. The trial is slated to last seven weeks.

(Includes Agency Inputs: Reuters)

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