Apple may be required to pay up to £1.5 billion in damages following a legal ruling involving 36 million iPhone and iPad users in the UK. This collective action was brought against Apple by Dr. Rachael Kent, who argued that the company abused its dominant market position by imposing an excessive 30% commission on app sales and in-app purchases. The Competition Appeals Tribunal found in favor of the claimants, who contended that this practice led to inflated prices for apps and digital content.
In response to the ruling, Apple expressed strong disagreement and announced plans to appeal. The company highlighted that 85% of apps on its platform do not incur any commission fees, suggesting that such charges apply only to paid apps and in-app purchases. Apple pointed to a program that reduces commission rates for small businesses as evidence of its support for fairness in the app economy.
This legal decision marks a significant milestone, with Dr. Kent’s legal team stating it is the first successful claim under the UK’s collective action framework. The tribunal’s ruling follows a recent designation by the Competition and Markets Authority (CMA), which recognized both Apple and Google as holding “strategic market status”. This designation could lead to regulatory actions, allowing competitors to establish their own app stores on iPhones, which would challenge Apple’s current restrictions.
Lawyers for Dr. Kent have stated that any UK user of an iPhone or iPad who purchased paid apps, subscriptions, or made in-app purchases since October 1, 2015, may be entitled to compensation. However, the exact compensation amounts for individual users and businesses have yet to be determined.
Source: https://www.bbc.com/news/articles/cgkzg3mkgx6o?at_medium=RSS&at_campaign=rss