Apple has faced a major setback in the United Kingdom after one of the regional tribunals ruled that the company had misused its dominant position in the app market. The court, in an antitrust lawsuit, found Apple guilty of charging developers unfair commissions on the App Store. The ruling might cost the tech giant around $2 billion in compensation.
Apple faces an antitrust lawsuit over App Store commissions in the UK
The London Competition Appeal Tribunal (CAT) ruled that Apple had misused its dominant position between 2015 and 2020 by blocking fair competition in app distribution and demanding excessive commissions from developers. The court further added that the Cupertino-based giant charged commissions of up to 30% instead of a fairer 17.5%.
The most shocking part of the ruling is that the court claims Apple passed nearly half of those extra costs on to consumers. This led to higher app prices across the brand’s ecosystem. The lawsuit was led by British academic Rachael Kent. She argued that Apple made “excessive profits” by controlling every aspect of how apps are sold and what developers pay. Her team estimates the damages to be about 1.5 billion pounds (about $2 billion).
Apple vows to appeal as the lawsuit gains momentum
Apple has officially acknowledged the ruling, saying it “strongly disagrees” with the ruling, calling it “a flawed view of a competitive and thriving app economy.” The company has also confirmed that it intends to appeal against the ruling. Another hearing is scheduled to take place next month to find a way to calculate the total damages.
But regardless, this case shows how diverse and powerful Britain’s legal system is. In this scenario, it set an example by allowing groups of consumers to collectively challenge a powerful corporation. Rachael Kent stated that the verdict proves “no company, no matter how wealthy or influential, is above the law.” Similar lawsuits are also planned against Microsoft, Google, and Amazon for their developer fees.
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