Economy|Business and EconomyApple loses landmark UK lawsuit over App Store commissionsTribunal ruled that Apple had abused its dominant position by shutting out competition and charging excessive prices.
## Tribunal Ruling on Apple’s App Store Practices
Tribunal Ruling on Apple’s App Store Practices
On Thu, Oct 19, 2023, the UK’s Competition Appeal Tribunal (CAT) ruled that Apple has abused its dominant market position by charging app developers excessive commissions. This ruling affects the period from October 2015 to the end of 2020, during which Apple was found to have restricted competition in the app distribution market.
The case, valued at approximately 1.5 billion pounds, was brought on behalf of iPhone and iPad users in the United Kingdom. A forthcoming hearing will address the calculation of damages and Apple's request for permission to appeal.
Apple has announced its intention to appeal the ruling, arguing that it misrepresents the competitive nature of the app economy. The CAT identified a discrepancy between the commission rate charged by Apple, typically 30%, and a proposed fair rate of 17.5%, noting that 50% of the overcharge was passed on to consumers.
The case, valued at approximately 1.5 billion pounds, was brought on behalf of iPhone and iPad users in the United Kingdom.
This case represents the first mass lawsuit against a technology company to reach trial under the UK’s collective action framework, which has been in place for a decade. It sets a precedent for similar cases, including those against other tech companies like Google, Amazon, and Microsoft.
The ruling is part of broader regulatory scrutiny on Apple, which is also facing a complaint with European antitrust regulators regarding its App Store terms and conditions. A related case involving Google is scheduled for October 2026, coinciding with a similar claim by Epic Games.
Based on reporting by Al Jazeera.