Apple loses UK lawsuit over App Store fees and competition
A British tribunal ruled on Thursday that Apple violated competition law through its App Store practices. The Competition Appeal Tribunal determined that the technology company blocked rivals from the app distribution market and imposed unfair charges on developers. Claimants seek more than 1.5 billion pounds in damages on behalf of millions of iPhone and iPad users across the United Kingdom.
The court found Apple forced customers to use its platform and passed excessive costs to consumers through a 30 percent commission on app purchases. Law firm Hausfeld brought the case with academic Rachael Kent and said the decision could trigger refunds for popular applications. Apple disagreed with the verdict and plans to appeal the ruling.
British regulators designated Apple and Google as having strategic market status on Wednesday because of their dominant smartphone positions. The Competition and Markets Authority will impose stricter oversight on their mobile services. Apple faces an additional 785 million pound lawsuit in Britain over developer fees and received a 500 million euro fine from European authorities in April for restricting developers from offering cheaper alternatives outside the App Store.
