Apple has lost a significant legal battle in the UK and could be forced to pay up to 1.5 billion Euros ($1.97 billion USD) in damages. A collective action lawsuit, brought on behalf of 36 million UK iPhone and iPad users, successfully argued that Apple abused its dominant market position through its App Store policies.

The claimants contended that consumers were overcharged for apps and in-app content due to these practices. The Competition Appeals Tribunal ultimately sided with the claimants in its ruling. (Source: bbc.co.uk)

Ruling Deems Fees 'Excessive and Unfair'

The case, led by academic Dr. Rachael Kent, centered on the 30% commission Apple typically levies on paid apps and in-app purchases. The tribunal found these charges to be "excessive and unfair," agreeing that they harmed consumers.

Dr. Kent celebrated the decision as a "landmark victory," stating it sends a message that no company is above the law.

According to the ruling, any UK user who made purchases on the App Store since October 1, 2015, could be entitled to compensation, though the exact amounts individuals could claim has not yet been established.

Apple Vows to Appeal Amidst Regulatory Scrutiny

Apple says is strongly disagrees with the ruling and intends to appeal. The company defended its App Store as a "thriving and competitive app economy" that provides a safe and trusted marketplace for developers and users. The tech giant also noted that 85% of apps on its store are free and therefore pay no commission, and that a reduced commission rate is available for small businesses.

This legal defeat comes as Apple faces increased regulatory pressure, with the UK's competition watchdog recently designating it as having "strategic market status," a move that could force it to allow rival app stores on its devices. (Source: computing.co.uk)

What's Your Opinion?

Do you think Apple's 30% commission on App Store sales is fair to consumers and developers? Should tech companies be compelled to allow third-party app stores on their hardware? If you are eligible, do you intend to seek compensation from Apple?