David Bridges
Key Points
- Appeal Status: Apple is appealing a £1.5 billion fine imposed by the UK’s Competition Appeal Tribunal.
- Antitrust Findings: The CAT concluded that Apple engaged in anticompetitive behaviors regarding App Store fees.
- Fee Dispute: Apple argues against the proposed developer fee rates of 15-20%, preferring the existing 30% rate.
- User Compensation: If the fine is upheld, it will be distributed among UK App Store users who made purchases from 2015 to 2024.
Apple isn’t ready to pay a several billion-dollar fine to UK App Store users and is filing an appeal over a major antitrust lawsuit. As first reported by The Guardian, Apple has requested to appeal to the UK’s Court of Appeal, which would escalate the case beyond the Competition Appeal Tribunal (CAT).
The latest appeal attempt follows an October decision from the CAT, where the court found that Apple engaged in anticompetitive practices by exploiting its dominant market position with the App Store to charge higher fees. The CAT’s ruling established a £1.5 billion, or roughly $2 billion, fine, but Apple said it planned to appeal and that the court “takes a flawed view of the thriving and competitive app economy.” The CAT didn’t grant Apple the appeal, leading the iPhone maker to seek a higher court to overturn the ruling.
Apple hasn’t made any official statements about its latest appeal application, but it’s likely that it will argue against the CAT’s proposed App Store developer fee rate of between 15 and 20 percent, which it reached through “informed guesswork,” instead of the existing 30 percent. If the fine does ultimately stick, the $2 billion fine would be split amongst any App Store user in the UK who made purchases between 2015 and 2024, according to The Guardian.
Daniel Mercer
