Following a recent development in a court case, Apple could be liable to pay up to $ 2 billion in damages. This court battle took place on behalf of 36 million iPhone and iPad users in the UK. Apple reportedly lost a legal dispute over App Store fees.
Proposed Apple settlement could deliver $2 billion to consumers
As per a recent court ruling, Apple could be liable to pay up to $2 billion after losing a legal battle. Dr. Rachael Kent, who is a Senior Lecturer & Researcher at King’s College London, pursued this lawsuit with her team of lawyers. As per their ruling, the Competition Appeals Tribunal found that Apple abused “its dominant position by charging excessive and unfair prices in the form of the Commission, which it charges developers for iOS app distribution services and iOS in-app payment services.”
This meant the claimants argued that Apple overcharged consumers for apps, app subscriptions, and other in-app purchases. They also claimed that developers were charged much higher commissions than they should be, and that Apple took advantage of its tech-giant status.
Apple reportedly said it would appeal as it strongly disagreed with the ruling. Dr. Kent said, “This is a landmark victory – not only for App Store users, but for anyone who has ever felt powerless against a global tech giant.” Further, she remarked, “Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.”
Apple defended itself by putting forward a few arguments. They mentioned that they charge a 30% commission only on paid apps, leaving 85% of apps on the App Store paying no commission. They also highlighted that introducing a new programme halved the 30% commission rate for small businesses.
Consequently, the ruling states, “The Tribunal will convene a hearing on the first convenient date after 3 November 2025 to hear submissions on all consequential matters, including costs, any applications for permission to appeal and the process for resolving any questions relating to the calculation of quantum.”
Originally reported by Elton Fernandes on Mandatory.
