Apple Faces £1.5 Billion Damages After UK Lawsuit Loss Over App Store Commissions - PRESS AI WORLD
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Apple Faces £1.5 Billion Damages After UK Lawsuit Loss Over App Store Commissions

Credited from: REUTERS

  • Apple lost a UK lawsuit over app store commissions, valued at £1.5 billion.
  • The Competition Appeal Tribunal found Apple abused its market dominance.
  • Rachael Kent, the case leader, called it a "landmark victory" for consumers.
  • Apple plans to appeal the decision, claiming the ruling is flawed.
  • The case may lead to changes in how app stores operate in the UK.

In a significant ruling, Apple lost a lawsuit in the UK over allegations of abusing its dominant position by imposing a **30% commission** on app developers, which the **Competition Appeal Tribunal (CAT)** deemed "excessive and unfair." The case, representing around **20 million iPhone and iPad users**, could result in Apple being liable for up to **£1.5 billion** in damages, impacting its operations significantly, according to Reuters and Channel News Asia.

The tribunal's ruling highlighted that Apple **blocked competition** in the app distribution market from **October 2015 to December 2020**, leading to overcharges passed onto consumers. Rachael Kent, the academic behind the lawsuit, argued that Apple earned "**exorbitant profits**" by maintaining a monopolistic stance over app sales and in-app transactions, as reported by BBC and Al Jazeera.

In defense, Apple stated it would appeal the ruling, asserting it "**takes a flawed view of the thriving and competitive app economy**." The company claims that its App Store fosters a safe environment for users while providing developers the tools necessary for success, as noted by India Times and Reuters.

This lawsuit marks the first major class-action case against a technology giant under the UK's new collective action regime, with indications that more similar cases could arise in the future as consumers seek recourse against perceived injustices in app store practices, according to Channel News Asia, BBC, and Al Jazeera.

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