Apple has suffered a major setback in the UK after losing a landmark class action antitrust lawsuit over claims that it imposes “excessive and unfair” fees on software sold through its App Store. The ruling marks the latest legal blow for the US tech giant.
The Competition Appeal Tribunal ruled on Thursday that Apple abused its dominant market position by charging developers commissions of up to 30 per cent on purchases made through the App Store.
Lawyers representing the claimants said around 36 million UK consumers could be eligible for compensation worth roughly £1.5bn. Apple, however, said it plans to appeal the decision.
In its findings, the tribunal said Apple holds “near absolute market power” in both iOS app distribution and in-app payment systems, concluding that the company “is abusing its dominant position by charging excessive and unfair prices” to developers.
Apple criticised the judgment, saying it reflected a “flawed view” of the mobile app ecosystem and insisting that iPhones face “vigorous competition” from other platforms. “This ruling overlooks how the App Store helps developers thrive while providing consumers a secure and trusted way to discover and pay for apps,” the company said.
The decision adds to mounting legal and regulatory pressure on Apple’s services division — a core part of its business expected to exceed $100bn in revenue this year.
It comes just a day after the UK’s Competition and Markets Authority announced new rules to govern how Apple and Google operate their mobile ecosystems under Britain’s Digital Markets Act.
Apple is also battling several elements of the EU’s own Digital Markets Act, which has already forced the iPhone maker to modify its App Store operations. Meanwhile, in the US, Apple continues to face scrutiny after the Department of Justice filed a landmark antitrust lawsuit last year accusing the company of maintaining a smartphone monopoly.
