Apple has asked the UK Court of Appeal to overturn a £1.5 billion ($1.76 billion) antitrust ruling that found the company overcharged millions of App Store users, escalating one of the most significant competition cases ever brought against the company in the country (via The Guardian).


The application follows a decision in October by the UK Competition Appeal Tribunal (CAT), which concluded that Apple abused its dominant position by charging excessive commissions on ‌App Store‌ purchases between 2015 and 2024. The tribunal found that Apple's control over app distribution on iPhones and iPads allowed it to impose commission rates of up to 30% that were higher than would have prevailed in a competitive market, resulting in consumer harm estimated to be worth £1.5 billion.

The case was raised as a collective action on behalf of approximately 36 million British consumers. Under UK collective proceedings law, eligible consumers are automatically included unless they opt out, meaning that anyone in the UK who made ‌App Store‌ purchases during the relevant period could be entitled to compensation if the ruling stands.

In its judgment, CAT said Apple should have charged lower commissions, estimating that rates of around 17.5% on app sales and 10% on in-app purchases would have been more appropriate. The tribunal acknowledged that this assessment relied on "informed guesswork" based on the evidence presented.

Apple strongly disputes that approach. After the October ruling, the company sought permission from CAT to appeal, but the tribunal refused in November, concluding that Apple had not met the legal threshold to challenge its decision. Apple has now applied directly to the Court of Appeal, which has the authority to grant permission even where CAT has declined.

Apple said it disagrees with the ruling and argues that the tribunal took a flawed view of the app economy. In a previous statement responding to the decision, the company said the ‌App Store‌ operates in a "thriving and competitive app economy" and provides developers and consumers with security, privacy protections, and access to a large marketplace. Apple also noted that most developers now pay a reduced 15% commission and that the ‌App Store‌ facilitated more than $55 billion in sales in the UK last year.

If Apple's appeal is rejected and the ruling is upheld, the £1.5 billion award will be distributed among eligible UK consumers, with individual payouts likely to be relatively small but collectively significant.
This article, "Apple Appeals $1.8 Billion UK Antitrust Ruling Over App Store Fees" first appeared on MacRumors.com

Discuss this article in our forums

Apple now has additional time to allow for tariffs on Chinese semiconductors, thanks to a delay on any actual cost impact until June 2027.


While the United States will still apply new tariffs on semiconductor imports from China, the effective tariff rate will be set at zero for approximately 18 months, according to a Federal Register filing (via CNBC). The tariff rate will increase on June 23, 2027, with the specific percentage to be announced at least 30 days in advance.

For Apple, the decision removes the near-term risk of higher import costs on a wide range of chips used across its products. While Apple designs its own A-series and M-series processors, which are manufactured by Taiwan Semiconductor Manufacturing Company in Taiwan, the company continues to rely on China-based suppliers for many other semiconductor components, including power management integrated circuits, display driver chips, connectivity controllers, and various supporting logic chips embedded throughout its devices. Many of those components would fall within the scope of the China-specific semiconductor tariff once the rate increases in 2027.

Although the tariff is technically being imposed immediately, the zero percent rate functions as a delay mechanism rather than a suspension. This preserves the legal and regulatory framework needed to raise tariffs at a later date, reducing immediate trade friction while retaining leverage in future negotiations, and provides clarity to firms like Apple amid long-term supply chain decisions.

The timing is particularly significant for Apple because of its ongoing efforts to diversify manufacturing and sourcing beyond China. Apple previously faced concerns about a potential 100% semiconductor import tariff. In August, Apple committed $600 billion toward domestic manufacturing and infrastructure efforts.
This article, "Apple Avoids New China Chip Tariffs Until 2027" first appeared on MacRumors.com

Discuss this article in our forums