Opt-out collective action allowed to proceed against Apple

The Competition Appeal Tribunal yesterday granted its fifth (and first “on the spot”) Collective Proceedings Order under the UK’s competition collective actions regime. 

The collective action is being pursued by Dr Rachael Kent against Apple, alleging that it abused its dominant position in the markets for distributing iPhone/ iPad apps through the “App store” and providing payment servicers to iPhone/ iPad users. Apple is said to have imposed restrictive terms on app developers to distribute apps, forced purchases exclusively through its App store, and imposed an “excessive” commission fee, which has caused loss to users who made in-app purchases. 

The CAT has reserved judgment on Apple’s attempt to strike out the allegation that its commission was excessive and will publish its full reasoning for the decision to certify in due course. We will provide a fuller update when the CAT’s judgment is released.