Apple could face claims estimated at around £1.5 billion after it lost a collective case in the UK arguing that its closed systems for apps resulted in overcharging businesses and consumers.
The ruling from a Competition Appeal Tribunal responded to the case brought on behalf of 36 million UK iPhone and iPad users, both consumers and enterprise customers.
Apple said it disagreed with the ruling [PDF] and planned to appeal.
The court found Apple had imposed charges for its iOS app distribution services and its in-app payment service charged developers a headline commission rate of 30 percent.
In a unanimous judgment, the court found Apple overcharged developers as a result of its behavior in the iOS app distribution services market and the iOS in-app payment services market. There was also an overcharge resulting from the extent to which developers passed on the costs to iPhone and iPad users.
The court found those represented in the case, led by academic Dr Rachael Kent, could be eligible for 8 percent interest on damages awarded.
Speaking to the BBC, Kent said the decision was a “landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant.”
In a statement, Apple said the ruling’s view of its software marketplace was mistaken. It argued the App Store was good for UK businesses and consumers because it offered a space for developers to sell their work and somewhere users could choose from millions of software products.
“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments. The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections,” the tech giant said.
Source: Apple faces £1.5B payout after losing UK App Store case • The Register
Which is quite funny for Apple to say, because it fights tooth and nail to ensure that there is no competition for the App Store. Even when the EU tells Apple it must enable alternate app stores or payment providers, it rolls around the floor like a child in a tantrum hoping to avoid the inevitable:
EU to force Apple to open up IOS for developers
Apple tries again to make EU officials happy with new fees for in-app purchases
Apple stamps feet but now to let EU developers distribute apps from the web
Apple reverses hissy fit decision to remove Home Screen web apps in EU
Robin Edgar
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