NEWS
APC Youths Demand Kyari’s Removal Over $6.8b NNPCL Debt
The APC Youth Solidarity Network has demanded the immediate resignation or sack of Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPC Ltd), following the company’s admission of owing a staggering $6.8 billion in debt.
This shocking revelation has sparked widespread outrage and raised fundamental questions about Kyari’s leadership and governance style.
Olalekan Isaac, the President of the group, at a press conference in Abuja, branded Kyari’s leadership a “catastrophic failure” marked by a lack of transparency, accountability, and fiscal prudence.
He condemned NNPC’s initial denial of the debt as a “brazen lie” that has eroded trust in the institution and undermined the nation’s economic stability.
The APC Youth Solidarity Network questioned how NNPC, under Kyari’s watch, could accumulate such a massive debt despite the nation’s vast oil resources.
They also lamented the nation’s reliance on imported fuel, despite being Africa’s largest oil exporter, as a direct consequence of years of systemic neglect and mismanagement of the state-owned oil refineries.
The group urged President Bola Tinubu to take swift and decisive action in addressing this crisis, including facilitating Kyari’s immediate resignation, initiating a comprehensive investigation into NNPC’s financial dealings, and implementing measures to prevent similar occurrences in the future.
Isaac warned that Kyari’s continued occupation of office would only exacerbate the nation’s economic woes and tarnish the reputation of the All Progressives Congress (APC) and the Nigerian people.
He demanded leadership that embodies transparency, consistency, and accountability, and called on President Tinubu to act decisively to restore the nation’s trust and confidence in its institutions.
Read full statement below:
Today, we convene in a somber atmosphere, compelled to address a pressing issue of profound gravity that has emerged within the hallowed halls of our nation’s premier oil entity, the Nigerian National Petroleum Corporation Limited (NNPC Ltd). With deep regret and a profound sense of dismay, we acknowledge the startling admission by NNPC Ltd, under the stewardship of Mr. Mele Kolo Kyari, that it has accrued a staggering debt of $6.8 billion—a stark reversal of their initial assertions, which vehemently dismissed such claims as baseless and unfounded.
This astonishing admission not only validates the conspicuous financial encumbrance that NNPC has become but also raises fundamental questions regarding the leadership and governance style of Mr. Mele Kolo Kyari, the Group Chief Executive Officer of NNPC Ltd. His tenure has been characterized by an unacceptable lack of transparency, accountability, and fiscal prudence, culminating in this colossal debt that threatens the very fabric of our national economy.
It has become painfully evident that the national oil corporation’s financial woes commenced early this year, when overdue payments for Premium Motor Spirit (PMS), commonly referred to as petrol, skyrocketed to an alarming $3 billion. Regrettably, this figure has since ballooned to an unprecedented $6.8 billion, representing a staggering 100% increase since April, as the Nigerian National Petroleum Company Limited (NNPC Ltd) grapples with the unsustainable disparity between fixed pump prices and escalating international fuel costs.
This shocking revelation has sparked widespread consternation, igniting a maelstrom of confusion, distrust, and disillusionment among the Nigerian populace. The very foundation of our institutions’ integrity is being eroded, casting a dark shadow on the nation’s future.
As the APC Youth Solidarity Network, we are profoundly dismayed by this disturbing development. As representatives of the youth and prospective leaders of this great nation, we cannot idly stand by while the credibility and trustworthiness of our institutions are mercilessly compromised.
How can we, the standard-bearers of Nigeria’s future, acquiesce to this systemic failure, which undermines the very fabric of our national identity? The APC Youth Solidarity Network will not remain silent in the face of this unfolding crisis.
Mr. Mele Kyari’s tenure has precipitated a crisis of confidence, rendering him an untenable moral and economic liability, not only to Mr President, but also to the nation at large. His prolonged occupation of office has devolved into an unmitigated embarrassment, casting a pall of shame not merely on the All Progressives Congress (APC) but on the entirety of Nigerians who rightfully demand transparency, accountability, and visionary leadership from institutions critical to our national well-being.
A poignant question echoes through the corridors of our collective conscience: How can we credibly entertain the narratives proffered by NNPC Ltd when they have so flagrantly flouted the principles of truthfulness and integrity? The stark inconsistency between their August 18th press release, which categorically denied any outstanding debts, and today’s admission of culpability, has spawned an environment of pervasive uncertainty.
Nigerians are now confronted with an existential dilemma: what to believe and whom to trust? The erosion of trust in our national institutions undermines the very fabric of our society, threatening our collective future.
This issue transcends mere financial accountability; it is a bad reflection of our nation’s pride and integrity. The citizens of Nigeria rightfully demand and deserve leadership that embodies transparency, consistency, and accountability, one that unswayed by the short tides of public opinion.
We, the APC Youth Solidarity Network, resolutely maintain that the time has arrived for Mr. Mele Kyari to assume full responsibility for this leadership failure. It is imperative that he relinquish his position, thereby sparing our nation further international embarrassment and ridicule.
Regrettably, Nigeria, Africa’s largest oil exporter, finds itself in the incongruous position of importing virtually all its fuel requirements. This anomaly is obviously a direct consequence of years of systemic neglect and mismanagement of our state-owned oil refineries. Furthermore, the selfish interests and lack of visionary leadership within our oil and gas sector have hindered the optimal utilization of the newly commissioned 650,000 barrel-per-day Dangote refinery. Instead of producing marketable petrol for domestic consumption, this facility is compelled to export other fuels abroad, exacerbating our nation’s energy woes.
This critical moment serves as a clarion call for transformative change, heralding a new era of transparency, accountability, and visionary leadership. We fervently implore Mr. Mele Kyari to relinquish his position, paving the way for fresh leadership that embodies the sacred values of openness, integrity, and responsibility that our citizens rightfully deserve.
Mr. Kyari’s protracted occupation of office has devolved into an unrelenting source of embarrassment, tarnishing the reputation of our esteemed party, the All Progressives Congress (APC), and the Nigerian people. We urge him to take the noble path of resignation, immediately relinquishing his duties to spare our nation further discomfort, reputational damage, and international ridicule.
By resigning, Mr. Kyari would demonstrate his commitment to integrity, accountability, and the values that our party holds sacrosanct. The youth of this nation are vigilantly observing, and we demand leadership that mirrors our aspirations for a brighter, and more prosperous future.
To this end, we issue a heartfelt appeal to President Bola Ahmed Tinubu, urging him to take swift, and decisive action in addressing this crisis. Mr. President, we implore you to:
- Facilitate the immediate resignation of Mr. Mele Kyari as Group Chief Executive Officer of NNPC Ltd, thereby ending his tenure of questionable leadership.
- Initiate a comprehensive, impartial investigation into NNPC’s financial dealings, aiming to unravel the circumstances surrounding the staggering $6 billion debt.
- Implement stringent measures to prevent similar occurrences in the future, ensuring the corporation’s fiscal discipline and transparency.
Through these decisive measures, we aim to achieve a trifecta of transformative outcomes: restoring the tarnished integrity of NNPC Ltd, upholding the sacred values of our party, and revitalizing the eroded trust of the Nigerian people.
Moreover, we seek to rekindle faith in our institutions, ensuring that those entrusted with leadership roles are strongly committed to the prosperity and progress of our great nation.
As a party, we reaffirm our steadfast commitment to upholding the timeless values of transparency, accountability, and exemplary governance. We shall persist in advocating for a Nigeria where accountability reigns supreme, and our leaders are held to the highest standards of integrity, probity, and moral rectitude.
Our vision is of a nation where leadership is characterized by selflessness, transparency, and an unyielding dedication to the well-being of all citizens. We will tirelessly strive to create an environment where accountability is not merely an aspiration but a lived reality.
NEWS
Customers of United Bank of Africa, Zenith bank, Fidelity bank, Sterling bank,Polaris Bank, Other Disconnected Banks May Not Get Alert, Others From January 27 Over Debt
Barring any changes, customers of nine banks in Nigeria may not be able to receive alerts and perform banking transactions using their mobile phones from January 27, 2025, as telecommunications operators have been authorised to disconnect the Unstructured Supplementary Service Data (USSD) codes assigned to the financial institutions due to N200 billion debt.This directive was given by the Nigerian Communications Commission (NCC) in a public notice yesterday, signed by the Commission’s Director of Public Affairs, Reuben Muoka, reports Daily Independent.The NCC said affected banks must settle their outstanding obligations by January 27, 2025, or risk losing access to their USSD codes.These codes, essential for enabling mobile banking services, could be reassigned to other applicants if the debts remain unresolved.Originally designed by telecom operators for services like airtime purchases and subscriptions, USSD has become a key tool in the banking sector, offering financial services to users without requiring an Internet connection.The commission revealed that, as of Tuesday’s (January 14, 2025) close of business, nine out of 18 financial institutions had not complied with regulatory directives.While other banks have cleared their debts, the total amount initially owed by the financial institutions was reported to exceed N200 billion.However, the regulator did not disclose the precise debt currently owed by the affected banks.According to the NCC, some of the unpaid invoices have remained unpaid since 2020, indicating a prolonged financial dispute between the banks and telecom operators.Part of the notice reads, “By the information made available to the commission as at close of business on Tuesday, January 14, 2025, of a total of 18 financial institutions, the nine institutions listed below have failed to comply significantly with the directives in the second joint circular of the Central Bank of Nigeria and the commission dated December 20, 2024, for the settlement of outstanding invoices due to MNOS, some since 2020.”The regulator noted that banks’ failure to comply with the CBN-NCC joint circular also means that they are unable to meet the good standing requirements for the renewal of the USSD codes assigned to them by the commission.It added, “In fulfilment of its consumer protection mandate, the commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025.”The affected financial institutions include United Bank for Africa Plc, Fidelity Bank Plc, First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Sterling Bank Limited, Wema Bank Plc, Zenith bank and other one financial institution. The affected USSD codes include 770, 919, 822, 329, 773, 833, 7799, 945 and 966.The NCC emphasised that the financial institutions had been duly notified of the need for immediate compliance and warned that consumers may face service disruptions if the issues remain unresolved.This development highlighted ongoing tensions between telecommunications companies and financial institutions over unpaid USSD-related debts, a challenge that has persisted for years.Earlier in the week, NCC had promised to issue a notice with the names of the erring banks, preparing bank customers to seek alternatives during the suspension period.USSD is a crucial payment gateway for many Nigerians.During the 20th anniversary of the telecoms sector in 2021, the then Group Managing Director of Zenith Bank Plc, Mr. Ebenezer Onyeagwu, said, “The introduction of USSD changed everything. Without telecoms infrastructure, there is no USSD code.”The value of USSD transactions between January and June 2024 was N2.19 trillion.However, this is a 54.75 percent decline from N4.84 trillion in the same period of 2023, with more Nigerians increasingly favouring internet transfers.In a December 20 memo, the CBN and NCC gave banks a December 31, 2024, deadline to pay 85 percent of all outstanding invoices (from February 2022)- a mandate that has been ignored by many of the banks.
Seplat Petroleum Development Company Limited (also known as Seplat Energy Plc) and 12 senior officials of the company have been dragged to court by the Federal Government of Nigeria for alleged tax evasion amounting to the sum of $37.5 million, The Witness reports.The 12 officials of the oil firm listed in the suit are: Roger Brown (CEO), Samson Ezugworie (COO/ED0; Eleanor Adaralegbe (CFO/ED); Effiong Okon (MD, ANOH Gas); Ayodele Olatunde (MD, Seplat West); Obi Ada Itotoi (MD, Seplat East); Pius Ozoemenah Udeh (MD, Elcrest); Edith Owuchekwa (Company Secretary); Chioma Yvonne Afe (Dir. External Affairs); Okechukwu Mba (Dir. New Energy); Alasdair Mackenzie (Dir. Strategy & Planning) and Steve Ojeh (Dir. Corporate Services).In the Suit No: FHC/L/ 982C/24, filed before the Federal High Court, Lagos division by the Federal Inland Revenue Service, FIRS, on behalf of the federal government, it was alleged that Seplat Petroleum and 12 of its officials, sometime in 2010, in Nigeria did purchase a participating interest in the producing assets of OML 4, OML 38 and OML 41 and failed or evaded to pay the statutory stamp duty imposed on the Purchase Agreement and the accruing interest in the sum of $37,581,083.40 to the Federal Republic of Nigeria.The FIRS alleged that by evading the said tax, the company and its officials committed an offence, contrary to S. 23 of the Stamp Duties Act and punishable under S.111 and 112 of the Stamp Duties Act (as amended).The defendants were also alleged to have counterfeited the seal of the Commissioner of Stamp Duties by inserting same on the purchase agreement of OML 4, OML 38, and OML 41.The five count charge filed before the court by the FIRS against Seplat Petroleum and its officials are:COUNT 1: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE,EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE.OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38 and OML 4I and failed or evaded to pay the statutory stamp duty imposed on the executed Purchase Agreement and the accruing interest in the sum of $37,581,083.40 (Thirty seven million, live hundred and eighty one thousand, eighty three dollars and forty cents only) a sum due and payable to the Federal Republic of Nigeria in so doing, committed an offence, contrary to S. 23 of the Stamp Duties Act and punishable under S.111 and 112 of the Stamp Duties Act (as amended).COUNT 2: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE,EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE.OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38 and OML 41 and did unlawfully and willfully evade the payment and remittance of duties, fines, penalties and debts due to the Government of the Federation imposed on the executed Purchase Agreement to acquire Oil Mining Lease 4, 38 and 41, in the sum of $37,581,083.40 (Thirty seven million, five hundred and eighty one thousand and forty cents only) and in so doing, committed an offence, contrary to and punishable under S. 111 and 112 of the Stamp Duties Act (as amended).COUNT 3: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE, EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE, OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38 the executed Purchase Agreements and the accruing interest in the sum of S eighty three dollars and forty cents only), a sum due and payable to the Federal Republic of Nigeria and in so doing, committed an offence contrary to and punishable under S. 32 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).COUNT 4: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE, EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE, OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38and OML 41 and failed or evaded to pay the statutory stamp duty imposed on the executed Purchase Agreement and the accruing interest in the sum of $37,581,083.40 (thirty seven million1, five hundred and eighty one thousand, eighty three dollars and forty cents only a sum due and payable to the Federal Republic of Nigeria in so doing, committed an offence, contrary to and punishable under S.40 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).COUNT 5: That you SEPLATPETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE, EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE, OKECHUKWU MBA and STEVE OJEH on or about 2010 in Nigeria and within the jurisdiction of this Honorable Court, did counterfeit the seal of the Commissioner of Stamp Duties by inserting same on the purchase agreement of OML 4, OML 38 and OML 41, for the purposes of verification relating to the taxes thereat and thereby committed an offence, contrary to S.43 (c) and punishable under S.43 ( c) of the Federal Inland Revenue Establishment Act 2007 (as amended).When contacted, Chioma Afe, Director, External Affairs and Sustainability, Seplat Energy, told The Witness via a text message that “The matter is in court and as such we cannot comment on it. Further information will be shared at an appropriate time as needed,”Meanwhile, the matter has been fixed for February 28, 2025 for trial.egramShareSeplat Petroleum Development Company Limited (also known as Seplat Energy Plc) and 12 senior officials of the company have been dragged to court by the Federal Government of Nigeria for alleged tax evasion amounting to the sum of $37.5 million, The Witness reports.The 12 officials of the oil firm listed in the suit are: Roger Brown (CEO), Samson Ezugworie (COO/ED0; Eleanor Adaralegbe (CFO/ED); Effiong Okon (MD, ANOH Gas); Ayodele Olatunde (MD, Seplat West); Obi Ada Itotoi (MD, Seplat East); Pius Ozoemenah Udeh (MD, Elcrest); Edith Owuchekwa (Company Secretary); Chioma Yvonne Afe (Dir. External Affairs); Okechukwu Mba (Dir. New Energy); Alasdair Mackenzie (Dir. Strategy & Planning) and Steve Ojeh (Dir. Corporate Services).In the Suit No: FHC/L/ 982C/24, filed before the Federal High Court, Lagos division by the Federal Inland Revenue Service, FIRS, on behalf of the federal government, it was alleged that Seplat Petroleum and 12 of its officials, sometime in 2010, in Nigeria did purchase a participating interest in the producing assets of OML 4, OML 38 and OML 41 and failed or evaded to pay the statutory stamp duty imposed on the Purchase Agreement and the accruing interest in the sum of $37,581,083.40 to the Federal Republic of Nigeria.The FIRS alleged that by evading the said tax, the company and its officials committed an offence, contrary to S. 23 of the Stamp Duties Act and punishable under S.111 and 112 of the Stamp Duties Act (as amended).The defendants were also alleged to have counterfeited the seal of the Commissioner of Stamp Duties by inserting same on the purchase agreement of OML 4, OML 38, and OML 41.The five count charge filed before the court by the FIRS against Seplat Petroleum and its officials are:COUNT 1: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE,EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE.OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38 and OML 4I and failed or evaded to pay the statutory stamp duty imposed on the executed Purchase Agreement and the accruing interest in the sum of $37,581,083.40 (Thirty seven million, live hundred and eighty one thousand, eighty three dollars and forty cents only) a sum due and payable to the Federal Republic of Nigeria in so doing, committed an offence, contrary to S. 23 of the Stamp Duties Act and punishable under S.111 and 112 of the Stamp Duties Act (as amended).COUNT 2: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE,EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE.OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38 and OML 41 and did unlawfully and willfully evade the payment and remittance of duties, fines, penalties and debts due to the Government of the Federation imposed on the executed Purchase Agreement to acquire Oil Mining Lease 4, 38 and 41, in the sum of $37,581,083.40 (Thirty seven million, five hundred and eighty one thousand and forty cents only) and in so doing, committed an offence, contrary to and punishable under S. 111 and 112 of the Stamp Duties Act (as amended).COUNT 3: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE, EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE, OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38 the executed Purchase Agreements and the accruing interest in the sum of S eighty three dollars and forty cents only), a sum due and payable to the Federal Republic of Nigeria and in so doing, committed an offence contrary to and punishable under S. 32 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).COUNT 4: That you SEPLAT PETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE, EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE, OKECHUKWU MBA, ALASDAIR MACKENZIE and STEVE OJEH, sometime in 2010, in Nigeria and within the jurisdiction of this Honorable Court, did purchase a participating interest in the producing assets of OML 4, OML 38and OML 41 and failed or evaded to pay the statutory stamp duty imposed on the executed Purchase Agreement and the accruing interest in the sum of $37,581,083.40 (thirty seven million1, five hundred and eighty one thousand, eighty three dollars and forty cents only a sum due and payable to the Federal Republic of Nigeria in so doing, committed an offence, contrary to and punishable under S.40 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).COUNT 5: That you SEPLATPETROLEUM DEVELOPMENT COMPANY LIMITED, ROGER BROWN, SAMSON EZUGWORIE, ELEANOR ADARALEGBE, EFFIONG OKON, AYODELE OLATUNDE, IBI ADA ITOTOI, PIUS OZOEMENAM UDEH, EDITH ONWUCHEKWA, CHIOMA YVONNE AFE, OKECHUKWU MBA and STEVE OJEH on or about 2010 in Nigeria and within the jurisdiction of this Honorable Court, did counterfeit the seal of the Commissioner of Stamp Duties by inserting same on the purchase agreement of OML 4, OML 38 and OML 41, for the purposes of verification relating to the taxes thereat and thereby committed an offence, contrary to S.43 (c) and punishable under S.43 ( c) of the Federal Inland Revenue Establishment Act 2007 (as amended).When contacted, Chioma Afe, Director, External Affairs and Sustainability, Seplat Energy, told The Witness via a text message that “The matter is in court and as such we cannot comment on it. Further information will be shared at an appropriate time as needed,”Meanwhile, the matter has been fixed for February 28, 2025 for trial.
A trial opening on 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.”The complainants say a “30 per cent surcharge” that the company “imposes” on apps purchased through Apple’s App Store comes at the “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 per cent 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.When contacted by AFP, Apple referred to a 2022 statement, in which it said 85 per cent 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
AFP
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