Apple denied appeal bid in £1.2bn UK App Store damages case

Apple has been denied permission to appeal a significant UK ruling that held the company accountable for anticompetitive behaviour in its App Store. 

The ruling, made on Thursday, is a significant development in calculating what could be a substantial payout, potentially as much as £1.2 billion.

The Competition Appeal Tribunal (CAT) refused Apple permission to appeal its ruling, which found that the tech giant charged “modest levels of commission” and stifled competition on its iOS App Store. However, the tech giant still has one final route of appeal: it can go to the Court of Appeal.

The case is one of the largest legal challenges the iPhone maker faces in Europe, as scrutiny mounts worldwide over how the company operates its digital marketplace.

Tribunal blocks Apple’s appeal attempt

Last month, the CAT found that Apple had engaged in anticompetitive behaviour by creating a competitive advantage in the iOS app distribution market. The panel found it “excessive and unfair” because it refers to Apple charging its usual 30% cut on in-app transactions.

The ruling concluded that the fare commission should have been only about 17.5%. Developers were overcharged for nearly nine years.

The tribunal also found that developers had passed on half the cost of those inflated fees to consumers, thereby effectively charging millions of British users higher prices for apps and in-app services.

On Thursday, the CAT refused Apple’s application to appeal the ruling, stating that Apple had not crossed the threshold required for reconsideration. Apple’s lawyers then requested a 21-day extension to file new papers with the Court of Appeal.

The tribunal’s judgment that “takes a flawed view of the thriving and competitive app economy” also disregarded the value Apple says it offers developers as well as consumers, the company said.

The case was brought by Rachael Kent, a British academic, on behalf of approximately 20 million UK iPhone and iPad users. Her lawyers had calculated damages from October 2015 until February 2024, along with interest, at £1.2 billion.

Kent said the case has been “a marathon, not a sprint,” but emphasized that last week’s ruling gets consumers “one step closer to seeing money rightfully put back into their pockets.

That opens the way for the damages phase to proceed, with the CAT expected to plan additional hearings on how compensation is to be distributed. It is likely to be a process that will take months.

Regulatory scrutiny of Apple increases around the world

The UK case comes as the iPhone maker faces mounting pressure over its control of app distribution and in-app payments across Europe and the U.S. European regulators have also targeted the tech firm, utilizing new rules designed to curb the power of big tech platforms.

In recent years, Apple has been forced to change App Store policies in the Netherlands, South Korea, and across the broader EU bloc. The UK judgment adds to a series of international rulings against the company, which have forced it to reduce fees or allow access for rival payment systems.

Industry analysts say the CAT decision could bolster other lawsuits that are in progress against Apple, not only in Europe but also elsewhere.

Apple now has a short period in which to request permission directly to appeal its case to the Court of Appeal. If the request is denied as well, the company has no other domestic options and will face preparing for a full damages payment.

The claimant team is expected to submit more detailed compensation models for affected consumers in the meantime. The tribunal will establish the eventual timeline, but experts say the next phase of the case is likely to extend into 2026.

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