The Competition Appeal Tribunal in the UK rejected the objection to the critical decision taken in the class action lawsuit against Apple’s App Store commissions. The court ruled in October that Apple had “almost absolute market power” over mobile app distribution and in-app payment systems, and that it abused this power by charging “excessive and unfair” commissions to developers. This decision is seen as an important turning point for Apple regarding the app market in the UK.
Apple requested a pre-authorized appeal against this decision of the court. However, the court rejected the company’s application in this direction as of today. This development raises the possibility that Apple will face compensation of more than £1 billion. Apple now only has the right to appeal to the UK Court of Appeal as a higher court. The company requested 21 days to make this application.
Apple is having problems in other countries and regions too
This case is part of the worldwide regulatory pressure Apple faces over its commission policies towards mobile app developers. The process in the UK involves an approach that questions not only App Store commission rates, but also broader commercial practices, such as the payment systems the company imposes on developers. Small and independent developers, in particular, claim that they lose a large portion of their application revenues due to Apple’s high commissions.
In addition, Apple recently announced that it is reducing the commission rates it charges for mini-app transactions. Under the newly launched partnership program, commissions from such transactions will be reduced by 50 percent. Although these changes are interpreted as the company’s effort to comply with existing regulations, it is not yet clear to what extent the legal processes in the UK have had an impact on this decision.
On the other hand, similar investigations in many countries, especially the European Union and the United States, focus on Apple’s App Store policies. Such legal controls, which are carried out to ensure fair competition in digital markets, may have long-term effects not only for Apple but also for other large technology companies. How the case in England turns out may indirectly affect the processes in other countries in this respect.