UK tribunal finds Apple abused App Store market power

A London tribunal on Thursday found that Apple abused its dominant position in the UK app market by charging app developers excessive commissions, a ruling that could expose the company to roughly 1.5 billion pounds in damages and entitle millions of iPhone and iPad users to compensation. The Competition Appeal Tribunal concluded the conduct took place from October 2015 until the end of 2020 and said Apple foreclosed competition in iOS app distribution and in‑app payment services by requiring use of its systems and levying commission rates that the tribunal deemed excessive.

The tribunal found Apple had near absolute market power for iOS app distribution and in‑app payments and typically charged developers a commission around 30 percent. Judges said a competitive benchmark commission would have been about 17.5 percent and calculated that roughly half of the overcharge was passed on to consumers. Claimants led by Dr Rachael Kent, a senior lecturer at King’s College London, brought the case on behalf of an estimated 36 million UK users and sought damages valued at about 1.5 billion pounds.

A hearing is scheduled next month to determine how damages should be calculated and to...