Apple loses lawsuit in UK, risks having to pay $2 billion in compensation

On October 23, the Competition Appeal Court (CAT) in the UK ruled that Apple abused its dominant market position by charging unfair fees to app developers.

Apple logo at a store in Milan, Italy. Photo: THX/TTXVN

This is a heavy blow, risking the US technology giant having to pay up to $2 billion in damages.

According to the CAT ruling, Apple abused its monopoly position from October 2015 to the end of 2020, preventing competition in the app distribution market and charging “excessive and unfair” fees to developers.

The court affirmed that Apple charged excessive fees to app developers and that these fees were passed on to users, so users in this case were entitled to a refund with interest. Responding to the CAT's decision, Apple representatives expressed their opposition to the ruling and announced that the company would file an appeal.

The CAT ruled against Apple following a class action lawsuit brought by academic Rachael Kent of King's College, University of London, on behalf of millions of iPhone and iPad users in the United Kingdom.

The plaintiffs allege that Apple charges users to download apps and takes a commission of up to 30% on those transactions, a much higher fee than its competitors. Kent argues that Apple has monopolistic behavior because many iPhone and iPad apps can only be downloaded from the App Store.

In the lawsuit, Kent is asking Apple to refund British customers, with about 19.6 million people being compensated a total of £1.5 billion ($2 billion).

A hearing is expected to take place next November to determine the amount of damages and consider Apple's appeal.

Source: https://baotintuc.vn/kinh-te/apple-thua-kien-tai-anh-nguy-co-phai-boi-thuong-2-ty-usd-20251024103432823.htm