UK Antitrust Lawsuit: Apple Faces Setback on App Store Fees

Key Highlights

• Legal Outcome: Apple lost an antitrust lawsuit in the UK, leading to financial obligations to users.
• Market Power: The tribunal found that Apple holds “near absolute market power” for iOS app distribution.
• Damages: Approximately £1.5 billion will be distributed among 36 million affected consumers.
• Regulatory Context: Apple’s relationship with regulators is increasingly strained, particularly regarding the EU’s Digital Markets Act.

Apple will owe money to UK users after losing an App Store antitrust lawsuit there on Thursday, according to Financial Times. The Competition Appeal Tribunal ruled that the iPhone maker abused its dominant market position to inflate developer fees.

The tribunal found that the company has “near absolute market power” for iOS app distribution and in-app payments. The decision declared that Apple has been “abusing its dominant position by charging excessive and unfair prices.” FT reports that Apple will appeal the decision.

The class action claimants said damages of about £1.5bn would be split between 36 million consumers. A subsequent hearing to determine the process for “resolving any questions relating to the calculation” of damages could come as soon as next month.

Apple has an increasingly strained relationship with the tighter regulations across the Atlantic. Earlier this week, the company stepped up its attacks on the EU’s Digital Markets Act (DMA), a law designed to protect consumers from Big Tech dominance. And on Wednesday, the UK’s Competition and Markets Authority (CMA) confirmed that Apple has “strategic market status” in the country’s equivalent of the DMA. That gives the CMA authority to “ensure that mobile platforms are open to effective competition.”