Key Takeaways
- Apple lost a major UK lawsuit over its 30% App Store commission
- The case represents 20 million UK iPhone and iPad users seeking up to £1.5 billion
- Court ruled Apple abused its dominant market position
- Apple plans to appeal the landmark decision
Apple has suffered a significant legal defeat in London after a court ruled the tech giant abused its dominant market position by charging app developers unfair 30% commissions through its App Store.
The Competition Appeal Tribunal (CAT) delivered the verdict following a trial earlier this year. The lawsuit was filed on behalf of approximately 20 million UK iPhone and iPad users and could result in damages worth up to £1.5 billion ($2.01 billion).
Legal Battle Over App Store Commissions
British academic Rachael Kent, who brought the case, argued that Apple generated “exorbitant profits” by eliminating all competition for app distribution and in-app purchases. The CAT agreed, finding that Apple had abused its dominant position by blocking competition and “charging excessive and unfair prices in the form of the commission which it charges developers.”
The tribunal confirmed that class members are entitled to damages, with the calculation method to be determined at a hearing next month.
Apple’s Response and Appeal Plans
Apple, which faces increasing regulatory pressure in both the US and Europe over developer fees, immediately announced it would appeal the ruling. The company called the decision flawed, stating it “takes a flawed view of the thriving and competitive app economy.”
An Apple spokesperson defended the App Store’s role, saying: “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.”
This case marks the first mass lawsuit against a technology giant to reach trial under Britain’s developing class action system, with numerous similar cases expected to follow.
