Apple Loses Landmark UK Lawsuit Over App Store Commissions

A UK tribunal ruled that Apple abused its dominant position by charging app developers unfair commissions through its App Store, potentially costing the company hundreds of millions in damages. It marks the first major tech 'class action' victory under the UK's collective lawsuit regime. Reuters reports: The Competition Appeal Tribunal (CAT) ruled against Apple after a trial of the lawsuit, which was brought on behalf of millions of iPhone and iPad users in the United Kingdom. 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 $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. '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.

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