According to AppleInsider, Apple is attacking the funding behind consumer group Which’s $2 billion App Store lawsuit in the UK Competition Appeals Tribunal. The tech giant specifically targeted Litigation Capital Management, the third-party funder backing the class action, questioning whether LCM can adequately cover litigation costs. This comes after the tribunal refused Apple’s appeal against the $2 billion ruling on November 13, but Apple continues fighting during ongoing hearings. LCM’s value crashed 99% in early October, dropping from its November 2024 valuation to just 12 million pounds ($15.7 million). Apple argues there’s been insufficient transparency about LCM’s financial troubles and whether they could cover Apple’s costs if Apple wins an appeal. The company faces the unusual situation where even a successful appeal might leave it unable to recover its legal expenses.
Apple’s Desperate Move
Here’s the thing – this is a pretty clever legal maneuver from Apple’s lawyers. They’re not just fighting the case on its merits anymore. They’re going after the financial plumbing behind the lawsuit itself. And honestly, it’s a smart play when you consider the numbers involved. We’re talking about a funder that’s basically lost 99% of its value – from whatever it was worth in November 2024 down to just $15.7 million. That’s catastrophic for a litigation funding company.
The Broader Implications
This case could set a huge precedent for how class action lawsuits get funded, especially in the tech sector. If Apple succeeds in getting the case thrown out over funding concerns, it might make other third-party funders think twice before backing similar claims. Basically, it raises the bar for what counts as “adequate” funding. And let’s be real – Apple can afford to drag this out forever, while consumer groups like Which depend on these funding arrangements to even get in the ring.
Look at the bigger picture here. We’re seeing tech giants getting more aggressive about challenging not just the lawsuits themselves, but the entire ecosystem that enables them. It’s like they’re saying “sure, sue us – but make sure your financial backing is rock solid.” That changes the game entirely for consumer advocacy groups who rely on third-party funding to take on deep-pocketed corporations.
What This Means For Consumers
So what happens if Apple actually wins this funding argument? The collective proceedings order application could get derailed before it even properly begins. And that $2 billion in potential refunds? Gone. Poof. Meanwhile, the LCM financial collapse raises serious questions about whether there’d even be money left to distribute if the case did succeed.
It’s a messy situation all around. Consumers might get screwed either way – either the case gets dismissed over funding issues, or it succeeds but the money’s not there to pay out. And Apple? They’re playing a dangerous game here. Sure, they might avoid paying $2 billion, but they’re also drawing more attention to their App Store practices at a time when regulators worldwide are already scrutinizing them.
