Apple has been found guilty of abusing its dominant position by charging app developers unfair commissions, according to a ruling by the UK’s Competition Appeal Tribunal (CAT) on Thursday.
The decision marks a major legal setback for the tech giant and could cost the company hundreds of millions of pounds in damages.
The lawsuit was filed on behalf of millions of iPhone and iPad users in the UK, claiming that Apple unfairly profited by shutting out competition in the app distribution market. The tribunal concluded that Apple abused its power from October 2015 to the end of 2020 by imposing excessive commission fees on app developers, typically around 30%, compared to what the tribunal considered a fair rate of 17.5%. The CAT also found that developers passed on about half of the overcharged amount to consumers.
Apple responded by saying it plans to appeal the decision, calling it “a flawed view of the thriving and competitive app economy.” The company argued that the App Store provides a safe, trusted platform that benefits both developers and users.
The case, valued at around £1.5 billion (approximately $2 billion), was brought by British academic Rachael Kent, who claimed Apple made “exorbitant profits” by maintaining total control over app distribution and in-app purchases. A hearing scheduled for next month will determine how damages will be calculated and whether Apple will be granted permission to appeal.
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