Apple Escalates Legal Battle in UK Over £1.5 Billion App Store Antitrust Ruling
Technology giant seeks permission to bring its challenge before the UK Court of Appeal after lower tribunal upheld costly antitrust judgment
Apple Inc. has intensified its legal challenge in the United Kingdom after a landmark competition ruling that could cost the company more than £1.5 billion in damages for its App Store practices.
The move marks a significant escalation in Apple’s response to a collective action brought by UK app developers and consumers who say the company abused its dominant market position by imposing “excessive and unfair” commission fees.
In October, the United Kingdom’s Competition Appeal Tribunal (CAT) found that Apple holds near-absolute market power over iOS app distribution and in-app payment services, concluding that its requirement that developers use the App Store and Apple’s payment system effectively foreclosed competition and led to inflated costs for developers and consumers.
That ruling created the basis for damages potentially exceeding £1.5 billion (roughly $2 billion), reflecting overcharges passed on over many years.
Apple initially sought permission to appeal the tribunal’s decision on its merits, but the CAT declined to grant that request.
The company has now formally applied to the UK’s Court of Appeal to overturn the tribunal’s ruling, arguing that the original judgment rests on flawed assumptions about market definition and the so-called “guesswork” involved in determining fair commission levels.
In filings to the higher court, Apple contends that its App Store ecosystem fosters competition and innovation, providing developers with a trusted platform that benefits both creators and consumers, and that the tribunal mischaracterised the competitive dynamics of digital marketplaces.
Apple has declined detailed public comment on the appeal but reiterated its position that the App Store benefits the UK’s digital economy by supporting a secure environment for app discovery and transactions.
Supporters of the original ruling, including lead claimant Dr Rachael Kent, have suggested that the tribunal’s decision represents a pivotal moment in holding major technology platforms to account and expanding legal avenues for consumers and developers to challenge anticompetitive conduct.
The outcome of the Court of Appeal case will be closely watched by global regulators and stakeholders in the wider technology sector, as it could influence how digital platform dominance and app store practices are regulated in other jurisdictions.
The appellate process may take several months and has the potential to reshape legal standards for competition in digital ecosystems if the tribunal’s ruling is upheld or overturned.
The move marks a significant escalation in Apple’s response to a collective action brought by UK app developers and consumers who say the company abused its dominant market position by imposing “excessive and unfair” commission fees.
In October, the United Kingdom’s Competition Appeal Tribunal (CAT) found that Apple holds near-absolute market power over iOS app distribution and in-app payment services, concluding that its requirement that developers use the App Store and Apple’s payment system effectively foreclosed competition and led to inflated costs for developers and consumers.
That ruling created the basis for damages potentially exceeding £1.5 billion (roughly $2 billion), reflecting overcharges passed on over many years.
Apple initially sought permission to appeal the tribunal’s decision on its merits, but the CAT declined to grant that request.
The company has now formally applied to the UK’s Court of Appeal to overturn the tribunal’s ruling, arguing that the original judgment rests on flawed assumptions about market definition and the so-called “guesswork” involved in determining fair commission levels.
In filings to the higher court, Apple contends that its App Store ecosystem fosters competition and innovation, providing developers with a trusted platform that benefits both creators and consumers, and that the tribunal mischaracterised the competitive dynamics of digital marketplaces.
Apple has declined detailed public comment on the appeal but reiterated its position that the App Store benefits the UK’s digital economy by supporting a secure environment for app discovery and transactions.
Supporters of the original ruling, including lead claimant Dr Rachael Kent, have suggested that the tribunal’s decision represents a pivotal moment in holding major technology platforms to account and expanding legal avenues for consumers and developers to challenge anticompetitive conduct.
The outcome of the Court of Appeal case will be closely watched by global regulators and stakeholders in the wider technology sector, as it could influence how digital platform dominance and app store practices are regulated in other jurisdictions.
The appellate process may take several months and has the potential to reshape legal standards for competition in digital ecosystems if the tribunal’s ruling is upheld or overturned.
