Apple was on Thursday denied permission to appeal a London tribunal ruling that found it had abused its dominant position in the app market. The tech giant can still take the case to a higher court, the Competition Appeal Tribunal (CAT) confirmed.
The CAT ruled last month that Apple had unfairly charged app developers high commissions, shutting out competition in app distribution. The tribunal described Apple’s fees as “excessive and unfair,” affecting developers and consumers alike.
As a result, Apple faces a potential damages bill of around 1.2 billion pounds ($1.3 billion). The damages cover the period from October 2015 to February 2024, including interest, according to lawyers representing Rachael Kent, the British academic who brought the case.
“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.
Apple’s spokesperson criticized the ruling, saying it “takes a flawed view of the thriving and competitive app economy” and ignores the benefits developers and consumers gain from its platform.
The tribunal found that developers were overcharged due to Apple’s 30% commission on app purchases, compared to the 17.5% commission that would have been fair. About half of the overcharge was passed on to consumers, the CAT said.
Apple’s lawyers have requested 21 days to apply to the Court of Appeal. If approved, the company could continue to challenge the ruling. Meanwhile, Apple faces ongoing scrutiny from U.S. and European regulators over App Store fees and practices under new Big Tech rules.
This landmark decision adds to the growing pressure on Apple to adjust its App Store policies and could influence similar cases worldwide.
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