Apple Loses Landmark Lawsuit Over App Store Monopoly
Apple faced a legal setback in London as the Competition Appeal Tribunal ruled against them, citing abuse of their dominant market position by charging developers a steep 30% commission. The case, involving around 20 million UK users and valued at 1.5 billion pounds, marks the first mass tech lawsuit under the UK's new class action regime.
In a significant legal blow, Apple lost a lawsuit in London on Thursday that accused the tech giant of exploiting its dominance by imposing an unfair 30% fee on app developers through its App Store.
Following a lawsuit filed on behalf of roughly 20 million iPhone and iPad users in the UK, the Competition Appeal Tribunal (CAT) ruled against Apple. They determined that Apple's practices stifled competition in the app distribution market by charging excessive and unfair prices. The lawsuit is valued up to 1.5 billion pounds, or approximately $2.01 billion.
The tribunal stated that members of the claimant class are entitled to damages, with calculations for these damages scheduled for a hearing next month. This case is notably the first mass lawsuit against a tech giant to proceed to trial under Britain's emerging class action-style legal framework.
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