ConnexionApple Appeals $1.8 Billion UK Antitrust Ruling Over App Store Fees
Apple has asked the UK Court of Appeal to overturn a £1.5 billion ($1.76 billion) antitrust ruling that found the company overcharged millions of App Store users, escalating one of the most significant competition cases ever brought against the company in the country (via The Guardian).
The application follows a decision in October by the UK Competition Appeal Tribunal (CAT), which concluded that Apple abused its dominant position by charging excessive commissions on App Store purchases between 2015 and 2024. The tribunal found that Apple's control over app distribution on iPhones and iPads allowed it to impose commission rates of up to 30% that were higher than would have prevailed in a competitive market, resulting in consumer harm estimated to be worth £1.5 billion.
The case was raised as a collective action on behalf of approximately 36 million British consumers. Under UK collective proceedings law, eligible consumers are automatically included unless they opt out, meaning that anyone in the UK who made App Store purchases during the relevant period could be entitled to compensation if the ruling stands.
In its judgment, CAT said Apple should have charged lower commissions, estimating that rates of around 17.5% on app sales and 10% on in-app purchases would have been more appropriate. The tribunal acknowledged that this assessment relied on "informed guesswork" based on the evidence presented.
Apple strongly disputes that approach. After the October ruling, the company sought permission from CAT to appeal, but the tribunal refused in November, concluding that Apple had not met the legal threshold to challenge its decision. Apple has now applied directly to the Court of Appeal, which has the authority to grant permission even where CAT has declined.
Apple said it disagrees with the ruling and argues that the tribunal took a flawed view of the app economy. In a previous statement responding to the decision, the company said the App Store operates in a "thriving and competitive app economy" and provides developers and consumers with security, privacy protections, and access to a large marketplace. Apple also noted that most developers now pay a reduced 15% commission and that the App Store facilitated more than $55 billion in sales in the UK last year.
If Apple's appeal is rejected and the ruling is upheld, the £1.5 billion award will be distributed among eligible UK consumers, with individual payouts likely to be relatively small but collectively significant.
This article, "Apple Appeals $1.8 Billion UK Antitrust Ruling Over App Store Fees" first appeared on MacRumors.com
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The application follows a decision in October by the UK Competition Appeal Tribunal (CAT), which concluded that Apple abused its dominant position by charging excessive commissions on App Store purchases between 2015 and 2024. The tribunal found that Apple's control over app distribution on iPhones and iPads allowed it to impose commission rates of up to 30% that were higher than would have prevailed in a competitive market, resulting in consumer harm estimated to be worth £1.5 billion.
The case was raised as a collective action on behalf of approximately 36 million British consumers. Under UK collective proceedings law, eligible consumers are automatically included unless they opt out, meaning that anyone in the UK who made App Store purchases during the relevant period could be entitled to compensation if the ruling stands.
In its judgment, CAT said Apple should have charged lower commissions, estimating that rates of around 17.5% on app sales and 10% on in-app purchases would have been more appropriate. The tribunal acknowledged that this assessment relied on "informed guesswork" based on the evidence presented.
Apple strongly disputes that approach. After the October ruling, the company sought permission from CAT to appeal, but the tribunal refused in November, concluding that Apple had not met the legal threshold to challenge its decision. Apple has now applied directly to the Court of Appeal, which has the authority to grant permission even where CAT has declined.
Apple said it disagrees with the ruling and argues that the tribunal took a flawed view of the app economy. In a previous statement responding to the decision, the company said the App Store operates in a "thriving and competitive app economy" and provides developers and consumers with security, privacy protections, and access to a large marketplace. Apple also noted that most developers now pay a reduced 15% commission and that the App Store facilitated more than $55 billion in sales in the UK last year.
If Apple's appeal is rejected and the ruling is upheld, the £1.5 billion award will be distributed among eligible UK consumers, with individual payouts likely to be relatively small but collectively significant.
Tags: Apple Antitrust, United Kingdom
This article, "Apple Appeals $1.8 Billion UK Antitrust Ruling Over App Store Fees" first appeared on MacRumors.com
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