Apple is today seeking permission to appeal the result of a billion-dollar lawsuit filed by UK app developers accusing the company of abusive commission levels.
The company last month lost the case and a hearing today will now decide how the damages are calculated. If the ruling stands, it is expected to end up costing Apple anywhere between £1B and £2B ($1.3B to $2.6B) – but Apple is expected to counter this with four arguments …
A quick recap
The lawsuit was filed back in 2023 on behalf of more than 1,500 app developers. It accused Apple of charging “abusive” commission levels on app sales and subscriptions. It argued that the company’s monopoly on the sale and distribution of iOS apps means that it is able to set its own commission levels, and that developers have no choice but to accept it.
The UK’s Competition Appeal Tribunal (CAT) last month ruled in favour of the developers. It also found that iPhone users had been harmed, as the excessive commissions were passed on to consumers in the form of higher app prices.
One interesting note in the case is that the tribunal cited Steve Jobs saying in 2008 that Apple didn’t intend to make money from the App Store, but merely wanted a commission sufficient to cover its costs.
The next step in the case is for the tribunal to decide on a method for calculating the amount of damages due to developers and consumers.
If all of this sounds very familiar, it’s because Apple is fighting a similar battle in the EU and yesterday announced the results of a study funded by the company which it said proved that commission rates have little impact on app pricing.
CAT to decide damages, but Apple wants to appeal
The job of the tribunal today is not to put a dollar figure on the damages owing, but instead to come up with a method for calculating them. The actual sum due won’t be decided until some time next year.
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