Apple is trying to overturn a ruling that found it overcharged millions of UK customers through App Store commissions. Here are the details.
A bit of background
Last October, the UK’s Competition Appeal Tribunal ruled that Apple had abused its dominant position in the App Store by charging what it described as excessive and unfair commissions for app sales and in-app purchases.
The case was filed on behalf of 36 million British customers by Dr Rachael Kent, a senior lecturer in digital economy and society at King’s College London, and covers App Store sales dating back to October 2015.
Speaking to The Guardian, Dr. Kent said that the decision felt like “a bit pinch me” moment, and signalled a broader shift in how consumers are pushing back against big tech:
“It’s definitely a tipping point. (…) People are pushing back against the harms from digital worlds, which they have to be living in and through every day and the financial implications of that.”
Here’s how Reuters described the original decision:
The Competition Appeal Tribunal (CAT) ruled against Apple after a trial of the lawsuit, which was brought on behalf of millions of iPhone and iPad users in the United Kingdom.
The CAT ruled that Apple had abused its dominant position from October 2015 until the end of 2020 by shutting out competition in the app distribution market and by “charging excessive and unfair prices” as commission to developers.
At the time, Apple said that it would seek to appeal the decision, which brings us to today.
Apple’s appeal
As reported by The Guardian:
Apple is seeking to overturn a landmark £1.5bn court ruling on behalf of millions of UK customers, which found the company overcharged them for years in its App Store.
The iPhone maker has applied to the court of appeal to challenge a verdict that campaigners heralded as the start of a “tidal shift against big tech”.
[…]
The appeal, if allowed, involves one of several class action suits against Apple and Google in which consumers, small businesses and entrepreneurs are demanding over £6bn in combined compensation. The class action cases use an opt-out system that means millions of people can be represented at once in claims of breaches of competition law.
This is Apple’s second attempt to appeal the case in recent months, after an earlier bid was rejected last November.
Do you think Apple should be granted the appeal? Let us know in the comments.
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