Apple Lost Antitrust Lawsuit
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Apple Lost Antitrust Lawsuit
Apple has been found guilty of abusing its dominant position in the app distribution market, following a landmark ruling by the UK’s Competition Appeal Tribunal (CAT). The tribunal determined that the company charged “excessive and unfair prices” for app distribution and in-app purchases through its App Store.
The case was brought forward by academic Rachael Kent, who argued that Apple’s standard 30% commission on transactions allowed it to make “exorbitant profits” at the expense of consumers, developers, and businesses. The ruling marks one of the most significant legal challenges Apple has faced in the UK concerning its App Store practices.
According to Reuters, the tribunal concluded that Apple had leveraged its dominant market position to impose unfair terms on app developers and users, resulting in inflated costs. Apple could now face up to £1.5 billion in damages, pending a hearing next week that will also address the company’s appeal.
In a statement shared via BBC News, an Apple spokesperson defended the company’s App Store model, saying:
“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.
The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections.”
“The tribunal found Apple’s 30% commission excessive, signalling potential relief for developers long constrained by high fees,” Hewish said. “If upheld, this could lower Apple’s cut closer to competitive levels, freeing more revenue for studios and possibly reducing in-app prices.”
More:Apple Games Announced
Apple Lost Antitrust Lawsuit
Apple has been found guilty of abusing its dominant position in the app distribution market, following a landmark ruling by the UK’s Competition Appeal Tribunal (CAT). The tribunal determined that the company charged “excessive and unfair prices” for app distribution and in-app purchases through its App Store.
The case was brought forward by academic Rachael Kent, who argued that Apple’s standard 30% commission on transactions allowed it to make “exorbitant profits” at the expense of consumers, developers, and businesses. The ruling marks one of the most significant legal challenges Apple has faced in the UK concerning its App Store practices.
According to Reuters, the tribunal concluded that Apple had leveraged its dominant market position to impose unfair terms on app developers and users, resulting in inflated costs. Apple could now face up to £1.5 billion in damages, pending a hearing next week that will also address the company’s appeal.
In a statement shared via BBC News, an Apple spokesperson defended the company’s App Store model, saying:
“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.
The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections.”
“The tribunal found Apple’s 30% commission excessive, signalling potential relief for developers long constrained by high fees,” Hewish said. “If upheld, this could lower Apple’s cut closer to competitive levels, freeing more revenue for studios and possibly reducing in-app prices.”
More:Apple Games Announced
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