Apple loses UK lawsuit over app store commissions
LONDON: Apple on Thursday (Oct 23) lost a London lawsuit accusing the company of abusing its market dominance by charging app developers an unfair 30 per cent commission through its app store.
The Competition Appeal Tribunal ruled against Apple after a trial earlier this year. The case was brought on behalf of about 20 million iPhone and iPad users in the United Kingdom and was valued at up to £1.5 billion (US$2 billion).
British academic Rachael Kent, who led the case, argued that Apple made “exorbitant profits” by excluding competition for the distribution of apps and in-app purchases.
APPLE PLANS TO APPEAL
The tribunal found that Apple had abused its dominant position by blocking competition in the app distribution market and by “charging excessive and unfair prices in the form of the commission which it charges developers.”
Members of the claimant class are entitled to damages, with a hearing next month set to determine how those damages will be calculated.
Apple, which has faced growing regulatory pressure in the United States and Europe over its app store practices, said it would appeal against the ruling.
“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.
The case is the first mass lawsuit against a major technology company to reach trial under the UK’s new class action-style legal regime. Several other cases targeting tech giants are expected to follow.
