A London tribunal ruled on Thursday that Apple abused its dominant position by imposing unfair commissions on app developers, a decision that could cost the U.S. tech giant hundreds of millions of pounds in damages. The Competition Appeal Tribunal (CAT) issued the ruling following a trial of a lawsuit filed on behalf of millions of UK iPhone and iPad users.
The CAT ruled that Apple had abused its dominant position from October 2015 until the end of 2020 by shutting out competition in the app distribution market and by “charging excessive and unfair prices” as commission to developers.
Apple – which has faced mounting pressure from regulators in the U.S. and Europe over the fees it charges developers – said it would appeal against the ruling, which it said “takes a flawed view of the thriving and competitive app economy”.
The case had been valued at around 1.5 billion pounds ($2 billion) by those who brought it. A hearing next month will decide how damages are calculated and Apple’s application for permission to appeal.
Rachael Kent, the British academic who brought the case, argued Apple had made “exorbitant profits” by excluding all competition for the distribution of apps and in-app purchases.
“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” an Apple spokesperson said.
MacDailyNews Take: Overturn this wretched travesty on appeal!
Apple’s App Store is a boon for developers. Most UK developers do not have to pay any App Store commission whatsoever. For those who do, roughly half pay 15 percent, which is a pittance for all that the App Store delivers to developers. – MacDailyNews, December 3, 2024
How much did it cost developers to have their apps burned onto CDs, boxed, shipped, displayed on store shelves prior to Apple remaking the world for the better for umpteenth time? Apple incurs costs to store, review, organize, surface, and distribute apps to over one billion users. — MacDailyNews, June 10, 2022
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