Apple will face a full trial in the UK after it was accused of breaching competition laws by overcharging people on the App Store through its commission rates. The London-based Competition Appeals Tribunal has rejected Apple’s motion to restrict or dismiss the class action filed in 2021. Digital economy expert and lecturer Dr. Rachael Kent is leading the proceedings.
Kent praised the decision in a statement to the Daily Mail. “I applaud the Competition Appeals Tribunal for this clear and well-thought-out decision,” she said. “A claim of this size is always subject to substantial defense. The anti-competitive conduct we allege against Apple goes to the heart of Apple’s business strategy, ” she said. And Apple has virtually unlimited resources, and it will always make this fight challenging.”
According to Dr. Kent’s complaint, Apple’s 30% commission on apps and in-app purchases is unfair. Furthermore, she believes that Apple’s cuts are forcing developers to raise prices, passing the cost on to consumers. At a court hearing in May, Apple sought to counter her claims that the 30 percent cut was unfair and excessive, arguing that she applied the wrong legal test. However, the court rejected all of Apple’s arguments.
“We do not accept Apple’s contention that the complaint discloses a legal error or flawed approach, whether it be a proper legal test for abuse or consideration of economic value in that work,” said presiding judge Ben Tidswell.
This isn’t the first time Apple has faced criticism for its 30 percent cut of App Store purchases. The company’s 30 percent commission rate later became the standard for most app stores, which has drawn opposition from lawmakers, developers and others in multiple countries. Most famously, Epic Games launched an all-out crusade and court action against Apple as a result.
Apple has since offered more commission rate algorithms, including a 15% cut for developers who make less than $1 million in sales from the App Store.
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