Apple's Costly Tribunal Defeat: 1 Billion Pound Blow Over App Fee Dispute

Apple was denied permission to challenge a ruling that it abused its market dominance by charging app developers unfair commissions. The decision, which could cost Apple over 1 billion pounds, follows a tribunal finding against the company's App Store practices. Apple disputes the ruling, calling it flawed.

Apple faces a potential financial blow exceeding 1 billion pounds after a London tribunal refused the tech giant's appeal against a ruling which labeled its app store fees as unfair. The Competition Appeal Tribunal (CAT) determined Apple abused its market dominance by imposing excessive charges on app developers.

This adverse ruling comes amidst growing scrutiny from regulators in both the U.S. and Europe over Apple's fee practices. Despite the setback, Apple maintains that the judgment misrepresents the competitive nature of the app economy. Apple's request to challenge the ruling at the Court of Appeal was denied, though it may still apply directly to the court.

The case, brought by British academic Rachael Kent, centers on calculated damages reaching 1.2 billion pounds, covering the period from 2015 to 2024. Last month's tribunal decision highlighted how developers were systematically overcharged, passing on excess costs to consumers, with Apple's typical commission significantly exceeding the baseline 17.5% rate.

(With inputs from agencies.)