Apple Loses £1.5 Billion UK Lawsuit Over App Store Monopoly and Excessive Commissions

Apple has been defeated in a significant UK legal battle regarding allegations of monopolistic practices through its App Store, with damages potentially reaching over £1.5 billion ($2 billion).

The Competition Appeal Tribunal determined that Apple effectively eliminated competition in the app distribution marketplace and imposed "excessive and unfair" commission fees on app developers.

In response to the verdict, Apple expressed strong disagreement and confirmed its intention to pursue an appeal against the decision.

The legal action was initiated by Dr. Rachael Kent, an academic from King's College London, with legal representation from Hausfeld & Co, acting on behalf of millions of British iPhone and iPad users.

Under the UK's legal framework, this type of class action automatically includes all potentially affected individuals who may receive compensation unless they specifically choose to opt out of the proceedings.

The trial, which commenced in January, featured arguments from the claimants that Apple users faced inflated prices "due to its prohibition on alternative app store platforms."

They contended that the 30-percent surcharge Apple "imposes" on applications purchased through the App Store results in consumers "paying higher prices."

Central to the claimants' case was the assertion that Apple utilized the App Store to exclude competitors, thereby forcing users to engage with its system and enhancing its profit margins in the process.

Apple had previously dismissed the trial as "unfounded," maintaining that its App Store "competes robustly against numerous other platforms."