A UK tribunal has ruled that Apple abused its dominant position by charging app developers excessive commissions through its App Store, potentially leading to hundreds of millions in damages. The decision marks the first major tech class-action victory under the UK’s collective lawsuit regime. The case, brought on behalf of millions of iPhone and iPad users, was brought to the Competition Appeal Tribunal (CAT) which ruled against Apple after a trial. The tribunal found that Apple had shut out competition in the app distribution market and charged excessive and unfair prices as commission to developers.
Apple has announced it will appeal the ruling, arguing that the decision takes a flawed view of the thriving and competitive app economy. The case had been valued at around $2 billion by those who brought it, with a hearing next month set to determine how damages are calculated and Apple’s application for permission to appeal. An Apple spokesperson stated that the ruling overlooks how the App, Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.