Apple has been found to have abused its dominant market position by imposing unfair commission fees on app developers. The UK’s Competition Appeal Tribunal (CAT) ruled that Apple engaged in anticompetitive practices between October 2015 and December 2020 by excluding competition in app distribution and “charging excessive and unfair prices.”
The decision, following a lawsuit filed on behalf of millions of iPhone and iPad users, could cost Apple as much as $2 billion in damages. The CAT concluded that developers were overcharged by the difference between a 17.5% fair commission and Apple’s typical 30% rate, with around half of the overcharge passed on to consumers.
Apple stated that it plans to appeal the decision, arguing that the ruling “takes a flawed view of the thriving and competitive app economy.” Apple said it plans to appeal the decision, arguing that the ruling reflects a flawed understanding of the competitive app economy. Rachael Kent, the British academic who filed the case, said the outcome demonstrates that no company, regardless of its wealth or influence, is beyond legal accountability.
The ruling is the first major class action trial under the UK’s collective action regime and comes amid growing regulatory scrutiny of major technology firms in the U.S. and Europe. The ruling marks the first major class action trial under the UK’s collective action regime and comes amid increasing regulatory scrutiny of Big Tech firms in both the U.S. and Europe.
