The UK’s Competition Appeal Tribunal (CAT) ruled on Thursday that Apple engaged in anticompetitive behavior by charging App Store developers “excessive and unfair prices” for app distribution services. [PDF] (via Reuters).
The Tribunal ruled that Apple abused its position by overcharging developers during the period from October 2015 through the end of 2020 by forcing them into using Apple’s in-app purchase system, offering no alternative to paying as much as a 30% commission. They found that the fees ultimately led to higher prices for consumers.
The ruling says Apple abused its monopoly over iOS app distribution and in-app payments, rejecting Apple’s argument that Android and other platforms were viable alternatives for consumers and developers. The Tribunal also rejected Apple’s argument that its rules and fees were required for user security and privacy.
The class action lawsuit was filed in 2021 by Kings College London academic Dr. Rachael Kent, and seeks up to £1.5 billion in damages.
A damages trial is scheduled for November. Apple will appeal the ruling.
