Apple says it will slash its surcharge on app purchases from 30% to between 10 and 17%.
But it has also introduced a new “core technology fee” of 50 cents per download for the popular apps. There are numerous other sleights of hand aimed at finding other ways to preserve the massive revenues it generates from its monopoly position.
How much of this Apple gets away with really depends on European and British
policymakers, and whether they are willing to enforce their interpretation of the new legislation via a series of hard-fought inquires and fines over the years to come.
Brussels, at least, is willing to bare its teeth. Earlier this week, the European Commission hit Apple with a €1.8 billion fine – 0.5% of its global sales – for breaching competition rules in relation to music streaming services on its App Store. This was a warning shot.
Increasingly, though, it seems that consumers seeking genuine redress may also need to take matters into their own hands. I am leading a legal action brought in the UK’s Competition Appeal Tribunal on behalf of millions of British iPhone owners, seeking to make Apple accountable for its longstanding 30% charge on apps and in-app purchases.
We argue that this charge is unjustifiable, breaches competition law and only exists because Apple used its monopoly position to shut out competitors.
Our trial is scheduled to begin in London in January next year, and is regarded as a test case in making Big Tech accountable for legal breaches. Its aim is not simply to force Apple to alter its practices, but also to compensate customers for historic overcharging.
Don’t expect Tim Cook to be in smiling attendance when the curtain goes up on that legal showdown. But for Apple, the stakes in London will be much higher than they were at the Superbowl.
Dr Rachael Kent is a lecturer at King’s College London and host of the Digital Health Diagnosed podcast.
