Apple Faces Legal Defeat in Landmark UK App Store Lawsuit
Apple has lost a lawsuit in London, accused of abusing its market position by charging a 30% commission on app sales. The Competition Appeal Tribunal ruled in favor of UK users, granting them damages. Apple plans to appeal, highlighting ongoing legal battles faced by the tech giant.
In a significant legal setback, Apple has been defeated in a London lawsuit concerning its App Store practices. The Competition Appeal Tribunal (CAT) found that the tech behemoth abused its dominant position by imposing a hefty 30% commission on app developers, a move alleged to stifle competition.
Brought by British academic Rachael Kent on behalf of 20 million UK iPhone and iPad users, the case argued Apple's strategies resulted in exorbitant profits by excluding competition. The lawsuit, valued at up to £1.5 billion ($2.01 billion), now entitles claimants to damages, to be calculated at a forthcoming hearing.
This landmark case marks the first class action-style lawsuit against a tech giant in the UK. Despite the ruling, Apple is set to appeal, claiming it misunderstands the App Store's role in fostering a competitive app economy.
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