Apple has petitioned the UK Court of Appeal to overturn a £1.5 billion ($1.76 billion) antitrust ruling that found the company had overcharged millions of App Store users, reports The Guardian.
In October, the UK Competition Appeal Tribunal (CAT) ruled that Apple had abused its dominant position in the marketplace by charging excessive commissions on App Store purchases between 2015 and 2024. The tribunal found that Apple’s control over app distribution on the iOS and iPadOS platforms allowed it to charge commission rates of up to 30%, which it would likely have been unable to do in a competitive market. CAT said the overcharging resulted in consumers being harmed to the tune of £1.5 billion.
Instead of up to 30%, the competition appeal tribunal found that Apple should be charging commission of 17.5% when selling apps and 10% on in-app purchases, while app developers should pay 10%.
The case was raised as a collective action on behalf of approximately 36 million British consumers. Since UK collective proceedings law says eligible consumers are automatically included in an action unless they opt out, anyone in the UK who made App Store purchases during the above period could be entitled to compensation if the ruling is upheld. The £1.5 billion award will be distributed among eligible UK consumers, likely in small amounts. (In cases like this, only the lawyers get rich.)
As you might imagine, Apple disagrees with the CAT ruling. Following the October ruling, Apple shought permission to appeal the decision. However, CAT denied permission in November, saying Apple had not met the legal threshold to challenge its decision. Apple new appeal is to the Court of Appeal, which has the authority to grant such permission, even when CAT has declined.
In a previous statement responding to the decision, the company said the App Store operates in a “thriving and competitive app economy” and provides developers and consumers with security, privacy protections, and access to a large marketplace. Apple noted that most developers now pay a reduced 15% commission and that the App Store facilitated more than $55 billion in sales in the UK last year.
