Quick Summary
Apple’s App Store practices have been found to be in breach of UK and EU competition laws.
The ruling has found that the company’s store commission fees are excessive, and that could result in a considerable damages bill.
Apple has lost a UK ruling that has deemed its App Store practices were anti-competitive. It could not only prove costly for the Cupertino company, but potential changes to the store could be wide reaching.
The fee of 30% that is claimed to be taken by Apple for purchases on its digital store has been found to be “excessive” and claimants in the class action are entitled to damages. That includes any Apple device users in the UK who believe they have overpaid for third-party apps and services from the App Store.
It could result in a bill for Apple of over £1.5 billion ($1.8 billion).
The case was originally filed in 2021 by a senior lecturer at King’s College London, Dr Rachael Kent, who acted “on behalf of 19.6 million UK consumers”. Apple was found to have overcharged developers, but has previously argued that the case was “meritless”.
It has also since released a statement (which was sent to T3), which announces its intent to appeal:
“We thank the tribunal for its consideration but strongly disagree with this ruling, which takes a flawed view of the thriving and competitive app economy.
“The App Store has benefited businesses and consumers across the UK, creating a dynamic marketplace where developers compete and users can choose from millions of innovative apps. 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 – giving developers and consumers many options in how they build, share, and download apps. We intend to appeal,” Apple says.
What this could mean for the App Store if the ruling stands is currently unknown. However, there will undoubtedly need to be a change in commission practices when operating in the UK and EU, at least.
Certainly, this and the impact of the long-standing court shenanigans between Apple and Epic Games could signal a big change in the way the App Store operates going forward.
