Apple's Billion-Pound Battle: Tribunal Rejects Appeal on App Store Fees

Apple was denied permission to appeal a tribunal ruling that it abused its dominant position by charging unfair commissions to app developers. The Competition Appeal Tribunal's decision could lead to Apple facing damages of over 1 billion pounds. Apple plans to appeal to a higher court.

Apple suffered a setback on Thursday as it was refused permission to appeal a London tribunal's decision that it leveraged its dominant market position to impose unfair commissions on app developers. This ruling, from the Competition Appeal Tribunal (CAT), could potentially cost the tech behemoth over 1 billion pounds.

Despite the CAT's decision, Apple intends to take its appeal to a higher court. An Apple spokesperson criticized the ruling, stating it presents a 'flawed view' of the app economy's competitive landscape. Meanwhile, Rachael Kent, who brought the case, asserted it brings developers closer to returning excessive charges to app users.

The CAT determined that app developers were overcharged due to a commission disparity, with the typical rate being 30% compared to an optimal 17.5%. This overcharge, half of which was reportedly passed onto consumers, forms part of the wider scrutiny over Apple by both US and European regulators.

(With inputs from agencies.)