Apple is facing a £1.5 billion ($1.8 billion) class action lawsuit in the United Kingdom, alleging that the company has been charging a 30% fee on every in-app purchase (IAP) through the App Store, which has burdened users in the UK.
The lawsuit was filed at the Competition Appeal Tribunal in London and claims that the cut has caused customers of Apple’s platform to bear additional costs that do not apply to other platforms such as Android.
According to Bloomberg, Apple has insisted that the lawsuit is unfounded, with the company stating that 84% of apps on the App Store do not charge anything.
In addition, the 15% cut only applies to developers who generate less than $1 million in revenue.
The lawsuit was filed almost two weeks after the European Commission (EC) found Apple had violated European antitrust laws related to the 30% cut, and Apple has now been given 12 weeks to respond to the allegations.
The lawsuit could have a major impact and damage Apple’s image worldwide if the company is proven guilty.