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UK Tribunal Rules Apple Abused App Store Dominance, Exposing It to £1.5 Billion in Damages

Fresh CMA oversight of Apple’s mobile ecosystem increases the stakes for potential changes to App Store rules.

Overview

  • The Competition Appeal Tribunal found Apple’s App Store commissions were "excessive and unfair" and amounted to an abuse of dominance.
  • The collective case, led by Dr Rachael Kent, covers roughly 36 million iPhone and iPad users in the UK with potential compensation estimated at up to £1.5 billion.
  • The tribunal signaled a fair commission benchmark of about 17.5% and a roughly 50% pass‑through to consumers to guide damages, and it set interest at 8%.
  • A November hearing will determine how payouts are calculated and consider Apple’s appeal, with reports differing on whether the relevant period ends in 2020 or 2024.
  • Apple said it will appeal and defended the App Store’s benefits, while the CMA’s new Strategic Market Status designation raises the prospect of rules such as alternative payments or sideloading.