LONDON (Reuters) -Apple was on Thursday refused permission to appeal against a London tribunal ruling that it abused its dominant position by charging app developers unfair commissions, though the tech giant said it would pursue an appeal to a higher court. The Competition Appeal Tribunal (CAT) ruled against Apple last month after a trial, finding […]
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Apple refused permission to appeal UK ruling on app store commissions
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LONDON (Reuters) -Apple was on Thursday refused permission to appeal against a London tribunal ruling that it abused its dominant position by charging app developers unfair commissions, though the tech giant said it would pursue an appeal to a higher court.
The Competition Appeal Tribunal (CAT) ruled against Apple last month after a trial, finding Apple had abused its dominant position by shutting out competition in the app distribution market and “charging excessive and unfair prices” as commission.
The decision left Apple – which has faced mounting pressure from regulators in the U.S. and Europe over the fees it charges developers – facing a potential bill of over 1 billion pounds ($1.3 billion).
The CAT refused Apple permission to challenge its ruling, but the company can still apply directly to the Court of Appeal, which an Apple spokesperson said the company would do.
APPLE FACING 1.2 BILLION-POUND DAMAGES BILL
The spokesperson said in a statement that the CAT’s ruling “takes a flawed view of the thriving and competitive app economy” and overlooked benefits for developers and consumers.
Lawyers representing Rachael Kent, the British academic who brought the case, said in court filings for the hearing on Thursday that they had calculated damages from October 2015 until February 2024, plus interest, at 1.2 billion pounds.
“This case has been a marathon, not a sprint, but we are one step closer to App Store users finally seeing their money rightfully returned to their pockets,” Kent said in a statement.
Last month’s ruling came after Apple was hit with a complaint to European antitrust regulators over the terms and conditions of its App Store under rules aimed at reining in Big Tech.
The CAT ruled developers were overcharged by the difference between a 17.5% commission for app purchases and the commission Apple charged, usually 30%. The CAT also ruled that app developers passed on 50% of the overcharge to consumers.
($1 = 0.7451 pounds)
(Reporting by Sam Tobin. Editing by Emelia Sithole-Matarise and Mark Potter)