Apple denied permission to appeal ruling over App Store commissions
What's the story
Apple has been denied permission to appeal a ruling by a London tribunal, which found that the tech giant abused its dominant position by charging unfair commissions from app developers. The Competition Appeal Tribunal (CAT) ruled last month that Apple had shut out competition in the app distribution market and "charged excessive and unfair prices" as commission.
Company stance
Ruling paints 'flawed view' of app economy: Apple
Responding to the ruling, Apple said it "takes a flawed view of the thriving and competitive app economy." The tribunal's decision could potentially cost the company over £1 billion ($1.3 billion) in damages. The case was led by British academic Rachael Kent and covers nearly a decade of App Store activity from October 2015 to February 2024.
Tribunal findings
Developers passed costs to users, tribunal found
The CAT found that developers were overcharged by the difference between Apple's usual 30% commission and a 17.5% benchmark used for calculation. This overcharging has led developers to pass about half those costs onto users. Despite the tribunal shutting down Apple's direct appeal, the company can still approach the Court of Appeal, leaving room for further legal proceedings.
Ongoing scrutiny
Ruling follows European antitrust complaint against Apple
The ruling comes after Apple was slapped with a complaint by European antitrust regulators over its App Store terms and conditions. The CAT also found that app developers passed on 50% of the overcharge to consumers. Meanwhile, regulators in Europe are closely monitoring Apple's operations within its store, further intensifying the tech giant's legal challenges across jurisdictions.