Kent v Apple: UK Tribunal Finds App Store Rules Abusive
The Competition Appeal Tribunal held that Apple abused its dominance in the UK App Store imposing a 30% commission and mandatory in-app payment rules
• The competition Appeal Tribunal has ruled that Apple abused its dominant position in the UK App Store market. • The tribunal found Apple’s 30% commission on paid apps, subscriptions and in-app purchases to be excessive and unfair. • Held that the mandatory use of Apple’s in-app payment system unlawfully excluded competition. • The claim was led by Hausfeld for Dr Rachel Kent, representing 36 million UK iPhone and iPad users • Estimated damages are £1.5bn, reflecting overcharges passed on to UK users throughout the relevant period.
• This is one of the few disputes to reach a full liability finding on Apple’s App store rules, with earlier scrutiny, namely the CMA’s investigation, ending without a formal conclusion. • Ruling confirms that when a platform controls both distribution and payments, leaving developers with no realistic alternative, the structure can amount to abuse of dominance.
- Hausfeld, ‘CAT rules unanimously in favour of Dr Kent against Apple’s App Store and consumers and businesses are owed approx. £1.5 billion https://www.hausfeld.com/en-gb/news/cat-rules-unanimously-in-favour-of-dr-kent-against-apple-s-app-store-and-consumers-and-businesses-are-owed-approx-15-billion accessed 25 October
- Competition and Markets Authority, Investigation into Apple AppStore https://www.gov.uk/cma-cases/investigation-into-apple-appstore accessed 25 October