Financial Times reportRefers toApple lost a class action antitrust lawsuit in the UK regarding the App Store. The Competition Appeal Tribunal ruled on Thursday that Apple abused its market dominance and charged excessive fees to developers. This ruling may result in Apple having to pay compensation to British users.
The court ruled that the company had "near-absolute market power" and charged excessive fees.
The court ruled that Apple has "near-absolute market power" in iOS app distribution and in-app payments. The ruling also alleges that Apple has been abusing its dominant position and charging excessive and unfair prices. Apple will appeal the ruling.
Class action seeks £15 billion in damages; subsequent hearings will clarify how the calculation is done
Plaintiffs in the class action lawsuit said they would seek approximately £15 billion (approximately NT$580 billion) in damages, to be distributed among 3600 million affected UK consumers. A follow-up hearing is expected as early as next month to determine the process for "resolving any issues related to the calculation of damages."
Tensions with European regulators continue
The ruling highlights ongoing tensions between Apple and increasingly stringent regulators across the Atlantic. Earlier this week, Apple intensified its attacks on the EU's Digital Markets Directive (DMA), which aims to curb the market dominance of large technology companies.
Just on Wednesday, the UK Competition and Markets Authority (CMA) confirmed that according to the UK's equivalent of the Digital Markets Act, Apple has a "strategic market status" in the country, and the court therefore found that it affects market competition.
Apple strongly retorts: The ruling ignores the value of the App Store and will appeal
In a statement responding to the ruling, Apple expressed strong dissatisfaction: "We appreciate the court's consideration but strongly disagree with this ruling, which presents a misguided view of the thriving and competitive app economy."
Apple emphasized that the App Store benefits businesses and consumers in the UK, creating a dynamic marketplace where developers can compete and users can choose from millions of innovative apps. Apple argued that the ruling "ignores how the App Store helps developers succeed and provides consumers with a safe, trusted place to discover apps and securely pay."
Apple further claimed that the App Store faces fierce competition from many other platforms and offers developers and consumers many choices in how to build, share and download apps, and said it "intends to appeal."
