Apple faces up to $2bn damages after UK court rules against its App Store practices

• The tribunal found Apple had overcharged developers and blocked competition.
• Apple plans to appeal the ruling, calling it flawed.
• Developers were overcharged by up to 12.5% in commission fees.
• Half of Apple’s overcharges were passed on to consumers.

A London tribunal has ruled that Apple abused its dominance by charging developers unfair commissions, exposing it to potentially up to £1.5 billion ($2bn) in damages.

As reported by Reuters, the Competition Appeal Tribunal ruled against Apple after a trial over a lawsuit representing millions of iPhone and iPad users in the UK.

The tribunal found the tech giant abused its dominance between 2015 and 2020 by blocking competition and charging unfair commissions. Apple said it would appeal, calling the ruling flawed.

The case is valued at about £1.5 billion ($2bn) with a hearing next month set to determine damages and Apple’s appeal request. 

Industry concerns 

British Academic Rachael Kent, who filed the case, accused Apple of exploiting its monopoly to block competition and impose excessive commissions on developers, claims the company denied.

Moreover, the tribunal found developers were overcharged by the difference between Apple’s 30% commission and a fair 17.5% rate, and that half of the excess costs were passed on to consumers.

Earlier this month, an Aptoide survey found that 84% of senior developers believe the industry cannot sustain itself under their dominance. Two-thirds expressed concern over dependence on the platforms, while over half cited high fees and marketing costs. 

The UK’s Competition and Markets Authority (CMA) also gave both Apple and Google hold strategic market status across mobile operating systems, app distribution, and browsers following extensive investigation - opening them up to regulatory measures similar to the EU's Digital Markets Act (DMA).