Billion-pound lawsuit against Apple over App Store opens in UK

Apple says the claim is 'meritless'. Kirill KUDRYAVTSEV / AFP
Apple says the claim is 'meritless'. Kirill KUDRYAVTSEV / AFP
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Billion-pound lawsuit against Apple over App Store opens in UK

Apple says the claim is 'meritless'. Kirill KUDRYAVTSEV / AFP
Apple says the claim is 'meritless'. Kirill KUDRYAVTSEV / AFP

Did US tech giant Apple abuse the dominant position of its app store in the UK? A trial opening Monday in which plaintiffs want more than one billion pounds is set to answer that question.
The complaint, filed in May 2021, accuses Apple of breaching European and UK competition laws by "its exclusion of any other app stores from iOS devices" like iPhones and iPads.
It claims that some 20 million Apple users may have been overcharged by the company "due to its ban on rival app store platforms", AFP said.
The complainants say a "30 percent surcharge" that the company "imposes" on apps purchased through Apple's App Store comes at "expense of ordinary consumers".
The case, which Apple has called "meritless", has been brought by Kings College London academic Rachael Kent and the law firm Hausfeld & Co.
The trial is set to last seven weeks at the Competition Appeal Tribunal in London.
At the heart are accusations that Apple used the App Store to exclude competitors, forcing users to use its system and boosting profits in the process.
"The 30 percent surcharge relates to most of the applications that you're going to be using when you're downloading and making in-app purchases on the App Store," Kent told AFP, citing dating platform Tinder as an example.
However, it does not apply to applications offering physical products such as the delivery services Deliveroo and Uber Eats, the academic specifies.
Any user who purchased applications or subscriptions in the British version of the App Store between October 1, 2015 and November 15, 2024 may be entitled to compensation from Apple, believes Kent, a lecturer in the digital economy.
The claim seeks total estimated damages of £1.5 billion ($1.8 billion).
According to British law, in this type of class action, all potentially affected persons are included in the procedure by default, and may benefit from possible compensation, unless they voluntarily opt out.
EU
When contacted by AFP, Apple referred to a 2022 statement, in which it said 85 percent of the applications on the App Store are free.
"We believe this lawsuit is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits the App Store and Apple's valuable technologies have delivered to the UK's innovation economy," the statement added.
The company also insists that the commission charged by the App Store is "very much in the mainstream of those charged by all other digital marketplaces".
Investigations and complaints against Apple have multiplied around the world in recent years, particularly regarding its app store.
The American behemoth is the subject of another complaint worth £785 million (936 million euros) related to rates charged to app developers.
Last June, the European Commission accused Apple of breaching its digital competition rules by preventing developers from "freely steering consumers to alternative channels" other than the App Store.
Apple then agreed to relax its rules, announcing in August that iPhone and iPad users in the European Union could delete the App Store and use competing platforms.
"They're responding to these investigations and also being told what to do. I don't think they're going to do it voluntarily, which I think is why it's really important to bring these collective actions," said Kent.



New Brazil Law Restricts Use of Smartphones in Elementary and High Schools

Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)
Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)
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New Brazil Law Restricts Use of Smartphones in Elementary and High Schools

Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)
Brazil's President Luiz Inácio Lula da Silva speaks at a ceremony for the signing of a bill that restricts the use of cellphones in schools nationwide, at the Planalto Palace, in Brasilia, Brazil, Monday, Jan. 13, 2025. (AP)

Brazil's President Luiz Inácio Lula da Silva on Monday signed a bill restricting the use of smartphones at school, following a global trend for such limitations.

The move will impact students at elementary and high schools across the South American nation starting in February. It provides a legal framework to ensure students only use such devices in cases of emergency and danger, for educational purposes, or if they have disabilities and require them.

"We cannot allow humanism to be replaced by algorithms," Lula said in a closed ceremony at the presidential palace in the capital, Brasilia, adding that the bill "acknowledges the work of every serious person in education, everyone who wants to take care of children and teenagers in this country."

In May, Fundacao Getulio Vargas, a leading think-tank and university, said Brazil had more smartphones than people, with 258 million devices for a population of 203 million Brazilians. Local market researchers said last year that Brazilians spend 9 hours and 13 minutes per day on screens, one of the world's highest figures.

Education minister Camilo Santana told journalists that children are going online at early ages, making it harder for parents to keep track of what they do, and that restricting smartphones at school will help them.

The bill had rare support across the political spectrum, both from allies of leftist Lula and his far-right foe, former President Jair Bolsonaro.

Many parents and students also approved the move. A survey released in October by Brazilian pollster Datafolha said that almost two-thirds of respondents supported banning the use of smartphones by children and teenagers at schools. More than three-quarters said those devices do more harm than good to their children.

"(Restricting cellphones) is tough, but necessary. It is useful for them to do searches for school, but to use it socially isn't good," said Ricardo Martins Ramos, 43, father of two girls and the owner of a hamburger restaurant in Rio de Janeiro. "Kids will interact more."

His 13-year-old daughter Isabela said her classmates struggled to focus during class because of their smartphones. She approved the move, but doesn't see it as enough to improve the learning environment for everyone.

"When the teacher lets you use the cellphone, it is because he wants you to do searches," she said. "There's still a lot of things that schools can't solve, such as bullying and harassment."

As of 2023, about two-thirds of Brazilian schools imposed some restriction on cellphone use, while 28% banned them entirely, according to a survey released in August by the Brazilian Internet Steering Committee.

The Brazilian states of Rio de Janeiro, Maranhao and Goias have already passed local bills to ban such devices at schools. However, authorities have struggled to enforce these laws.

Authorities in Sao Paulo, the most populous state in Brazil, are discussing whether smartphones should be banned both in public and private schools.

Gabriele Alexandra Henriques Pinheiro, 25, works at a beauty parlor and is the mother of a boy diagnosed with autism spectrum disorder. She also agrees with the restrictions, but says adults will continue to be a bad example of smartphone use for children.

"It is tough," she said. "I try to restrict the time my son watches any screens, but whenever I have a task to perform I have to use the smartphone to be able to do it all," she said.

Institutions, governments, parents and others have for years associated smartphone use by children with bullying, suicidal ideation, anxiety and loss of concentration necessary for learning. China moved last year to limit children’s use of smartphones, while France has in place a ban on smartphones in schools for kids aged six to 15.

Cellphone bans have gained traction across the United States, where eight states have passed laws or policies that ban or restrict cellphone use to try to curb student phone access and minimize distractions in classrooms.

An increasing number of parents across Europe who are concerned by evidence that smartphone use among young kids jeopardizes their safety and mental health.

A report published in September by UNESCO, the United Nations Educational, Scientific and Cultural Organization, said one in four countries has already restricted the use of such devices at schools.

Last year in a US Senate hearing, Meta CEO Mark Zuckerberg apologized to parents of children exploited, bullied or driven to self-harm via social media. He also noted Meta’s continued investments in "industrywide" efforts to protect children.