Apple was today denied permission from the UK’s Competition Appeal Tribunal to appeal a ruling that found its App Store commission practices to be unlawful and could result in damages of over $1 billion.
The hearing follows a decision made in October by the Competition Appeal Tribunal (CAT) saying that Apple unlawfully abused its position in the distribution of iOS apps. The case was brought forward in 2023 on behalf of more than 1,500 UK developers who alleged that Apple charged excessive commission rates on paid apps and in-app purchases.
The tribunal agreed, ruling that Apple holds a monopoly over the sale and distribution of iPhone apps and that its commission structure resulted in higher prices being passed on to consumers. According to the CAT’s published judgment, it accepted the claimants’ argument that Apple’s control over app distribution meant developers had “no economically viable alternative” to the App Store.
The tribunal also cited comments made by Steve Jobs in 2008 that Apple did not intend to profit from the store and aimed only to cover operating costs. That early statement was referenced by the claimants as evidence that Apple’s current commission structure had diverged significantly from its initial framing.
The latest hearing sought to establish a methodology for calculating compensation for both developers and affected consumers. Apple used the same hearing to request permission to appeal the October ruling, which was denied. Apple is now entitled to apply directly to the Court of Appeal to challenge the refusal and continue pursuing an appeal of the main ruling.
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