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Apple ( AAPL ) to appeal CAT ruling, claims app economy is

competitive

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Ruling on first tech giant trial boosts UK 'class action'

regime

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Other tech giants like Google face similar lawsuits in UK

(Recasts, adds details throughout)

By Sam Tobin

LONDON, Oct 23 (Reuters) - Apple ( AAPL ) abused its

dominant position by charging app developers unfair commissions,

a London tribunal ruled on Thursday, in a blow which could leave

the U.S. tech company on the hook for hundreds of millions of

pounds in damages.

The Competition Appeal Tribunal (CAT) ruled against Apple ( AAPL )

after a trial of the lawsuit, which was brought on behalf of

millions of iPhone and iPad users in the United Kingdom.

The CAT ruled that Apple ( AAPL ) had abused its dominant

position from October 2015 until the end of 2020 by shutting out

competition in the app distribution market and by "charging

excessive and unfair prices" as commission to developers.

Apple ( AAPL ) - which has faced mounting pressure from regulators in

the U.S. and Europe over the fees it charges developers - said

it would appeal against the ruling, which it said "takes a

flawed view of the thriving and competitive app economy".

The case had been valued at around 1.5 billion pounds

($2 billion) by those who brought it. A hearing next month will

decide how damages are calculated and Apple's ( AAPL ) application for

permission to appeal.

Thursday's ruling comes after Apple ( AAPL ) was hit with a

complaint to European antitrust regulators over the terms and

conditions of its App Store under rules aimed at reining in Big

Tech.

LANDMARK MASS LAWSUIT

Rachael Kent, the British academic who brought the case,

argued Apple ( AAPL ) had made "exorbitant profits" by excluding all

competition for the distribution of apps and in-app purchases.

Her lawyers argued at the start of the trial in January

that Apple's ( AAPL ) "100% monopoly position" allowed it to impose

restrictive terms and excessive commissions on app developers,

which Apple ( AAPL ) denied.

The CAT said in its ruling that developers were

overcharged by the difference between a 17.5% commission for app

purchases and the commission Apple ( AAPL ) charged, which Kent's lawyers

said was usually 30%. The CAT also ruled that app developers

passed on 50% of the overcharge to consumers.

"This ruling overlooks how the App Store helps developers

succeed and gives consumers a safe, trusted place to discover

apps and securely make payments," an Apple ( AAPL ) spokesperson said.

BOOST FOR UK'S 'CLASS ACTION' REGIME

The case was the first mass lawsuit against a tech giant to

come to trial under Britain's fledgling class action-style

regime, which this year reached its 10th anniversary and has

seen several multi-billion-pound cases certified for trial but

with limited success for consumers so far.

There are, however, many other cases waiting in the wings,

including one against Google over the commission it

charges app developers for access to its Play Store.

That case is due to begin in October 2026 and will be

heard alongside a similar claim by Epic Games, which is engaged

in parallel litigation with Apple ( AAPL ) in the U.S.

Fellow tech giants including Amazon and Microsoft are

also facing sizeable claims at the CAT.

Kent said in a statement that the ruling shows Britain's

collective action regime is working and "sends a clear message:

no company, however wealthy or powerful, is above the law".

($1 = 0.7451 pounds)