A pivotal ruling in the UK regarding Apple’s App Store policies has been finalized, with a tribunal in London rendering a decision against the tech giant, which may lead to costs of up to $2 billion for Apple.
### London Tribunal Finds That Apple Overcharged App Developers for Years with Unjust Commissions
A London tribunal determined on Thursday that Apple exploited its leading position by imposing unjust commissions on app developers, a determination that could leave the American technology firm liable for hundreds of millions of pounds in compensation.
The Competition Appeal Tribunal (CAT) passed judgment against Apple following a trial concerning the lawsuit initiated on behalf of millions of iPhone and iPad users across the UK. The CAT established that Apple had misused its leading position from October 2015 to the conclusion of 2020 by obstructing competition within the app distribution sphere and by “levying excessive and unfair prices” as commission on developers.
This case had been estimated to be valued at approximately 1.5 billion pounds ($2 billion) by the plaintiffs. A hearing scheduled for next month will determine the calculation of damages and address Apple’s request for permission to appeal.
Apple has already indicated its intent to appeal the ruling, asserting that it “takes a flawed perspective of the vibrant and competitive app market.”
The projected $2 billion in damages that could be enforced is anticipated to encompass several factors:
– Developers were overcharged due to the gap between a 17.5% commission for app purchases and the typical 30% commission charged by Apple.
– The CAT also found that app developers transferred 50% of the overcharge to consumers.
Further updates regarding the case, including Apple’s appeal and the actual damages when finalized next month, will be closely observed.
