Apple’s fight to defend its App Store policies has hit a significant snag in the United Kingdom. The UK’s Competition Appeal Tribunal (CAT) has refused Apple’s request to appeal a landmark ruling from October, which found the company abused its dominant market position with its App Store rules.
The tribunal’s original decision found that Apple’s practice of forcing developers to use its in-app purchase system—and charging them an “excessive and unfair” commission of up to 30%—was anti-competitive.
The tribunal’s refusal to grant an appeal is a major victory for the case, which was brought forward by academic Rachael Kent on behalf of over 1,500 UK developers. It solidifies the October ruling and brings developers one step closer to seeing potential damages, which legal representatives estimate could exceed £1.2 billion ($1.3 billion).
At the heart of the original ruling was the CAT’s finding that developers have “no economically viable alternative” to the App Store to reach iPhone and iPad users. The tribunal agreed that Apple holds a monopoly over app distribution on its platform, allowing it to shut out competition and impose unfair fees, much of which is passed on to consumers.
Apple has consistently defended its App Store model. A company spokesperson stated that the ruling “takes a flawed view of the thriving and competitive app economy” and overlooks the significant benefits and value the App Store provides for both developers and consumers.
While the Competition Appeal Tribunal has blocked this path, the legal battle isn’t entirely over. Apple still has the option to apply directly to the Court of Appeal to appeal this ruling. The company’s legal team has indicated it will seek to do so within the next few weeks.
What do you think? Is this a major win for developers, or does Apple have a point about the value of its ecosystem? Let us know your thoughts in the comments. Stay updated with the latest news on this by downloading the Appleosophy App from the App Store or by visiting our website.
