"Apple could be forced to pay up to 1.5bn in damages after losing a collective legal action court case brought on behalf of 36 million UK iPhone and iPad users, both consumers and businesses. The Competition Appeals Tribunal found that Apple had abused its dominant position by charging "excessive and unfair" prices in the form of the 30% commission, which it usually levies both on app sales and in-app payments."
"Dr Kent called the decision a "landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant". "Today's ruling sends a clear message: no company, however wealthy or powerful, is above the law." The tribunal's decision comes a day after the Competition and Markets Authority (CMA) designated both Apple and Google as having "strategic market status" - effectively saying they have a lot of power over mobile platforms."
"Apple maintains that because commission is only charged on the sale of paid apps and on in-app purchases, 85% of apps on the App Store do not pay any commission at all. And it points to its introduction of a programme for small businesses where the usual 30% rate of commission is halved."
Apple could be required to pay up to £1.5bn in damages after losing a UK collective legal action brought on behalf of 36 million iPhone and iPad users. The Competition Appeals Tribunal found Apple abused its dominant position by charging "excessive and unfair" prices via a 30% commission on app sales and in‑app payments. Claimants argued consumers were overcharged for apps, subscriptions and digital content purchased inside apps. Apple said it strongly disagreed and will appeal. The case was led by Dr Rachael Kent, whose lawyers say it is the first successful use of the UK's collective action regime. The CMA designated Apple and Google as having "strategic market status", potentially allowing regulators to force Apple to permit rival app stores.
Read at www.bbc.com
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