Apple Loses $2B British App Store Battle – No Appeal Against Landmark Antitrust Fine

Apple just got served a bitter British bite. The tech giant's attempt to appeal a potential $2 billion UK antitrust fine over App Store abuses has been shut down—hard.

Regulators aren't playing nice with Big Tech's walled gardens anymore. This ruling could crack open Apple's lucrative app ecosystem like a cheap iPhone case.

Meanwhile in Cupertino: another quarter, another $20B+ in services revenue. Funny how those 'fees' always find their way to the bottom line.

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Apple was in court for a hearing with the Competition Appeals Tribunal (CAT), where it was seeking permission to pursue an appeal with the tribunal. CAT has now refused that appeal, saying that in its judgement Apple’s arguments do not have any reasonable chance of success. Apple can still appeal directly to the U.K.’s Court of Appeal.

Exploited Position

The Competition Appeal Tribunal (CAT) ruled last month that the tech giant exploited its dominant position by charging app developers an unfair 30% commission through its App Store. The class-action lawsuit, brought on behalf of roughly 20 million UK iPhone and iPad users. It could cost Apple up to £1.5 billion ($2 billion) in damages.

The CAT ruled developers were overcharged by the difference between a 17.5% commission for app purchases and the commission Apple charged, usually 30%. The CAT also ruled that app developers passed on 50% of the overcharge to consumers.

Apple – which has faced mounting pressure from regulators in the U.S. and Europe over the fees it charges developers – has previously said the ruling “takes a flawed view of the thriving and competitive app economy”. Apple said the judgment also overlooked the benefits of the App Store for developers and consumers.

Last month’s ruling came after Apple was hit with a complaint to European antitrust regulators over the terms and conditions of its App Store under rules aimed at reining in Big Tech.

It is another example of how exposed tech groups like Apple are to legal and regulatory issues both at home and abroad. These are risks the company and investors need to be aware of – see above.

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