London: Apple has been denied permission by the United Kingdom’s Competition Appeal Tribunal to challenge a landmark ruling that found the company abused its dominant position by charging unfairly high commissions on its App Store.
The decision is a major setback for Apple, which has been fighting a long legal battle over the fees it collects from app developers for distributing apps and handling in app payments on iPhones and iPads. The tribunal ruled earlier this year that Apple held a dominant position in the market and had used that power to impose commission rates that were higher than what would be considered fair in a competitive environment.
The case was brought on behalf of millions of UK consumers who were believed to have been indirectly affected by the higher fees. According to the tribunal, developers passed on a significant part of these excess charges to users through higher prices for paid apps and in app services.
Apple argued that its App Store has helped create a successful and competitive digital marketplace. The company said the ruling misunderstood how the app economy works and stressed that it would continue to defend its business model. Despite being refused permission to appeal by the tribunal, Apple can still apply directly to the Court of Appeal in an effort to overturn the findings.
Regulators in the United Kingdom and Europe have increased scrutiny of large technology companies, especially those controlling major digital platforms. Earlier this year, Apple faced a major fine in the European Union for restricting how developers could direct users to alternative payment options.
The next phase of the UK case will focus on how damages should be calculated and how much Apple may eventually have to pay. The final amount could be significant, depending on how the tribunal measures the impact on consumers.
Apple has not announced any immediate changes to its App Store policies in the UK, but industry experts say the ruling could lead to further pressure on the company to adjust its commissions and allow more flexibility for developers.
The case is expected to influence similar disputes around the world as regulators continue to challenge the business practices of major digital platforms.