Core Viewpoint - Apple Inc. lost a significant class action lawsuit in the U.K. regarding its 30% commission on app sales, which was deemed an abuse of market dominance, potentially costing the company up to £1.5 billion (approximately $2 billion) in damages [1][2]. Group 1: Lawsuit Details - The U.K. Competition Appeal Tribunal ruled against Apple after a trial initiated on behalf of around 20 million users, with compensation estimates suggesting Apple may owe £75 ($100) per customer [1][2]. - This ruling represents the first mass lawsuit against a tech giant under the U.K.'s class action regime, which has seen limited success for consumers in the past [4]. Group 2: Market Dynamics - Apple has faced ongoing criticism from app developers, including Spotify and Epic Games, for its high commission rates, although the company argues that it provides marketing and distribution support to developers [3]. - The lawsuit coincides with a broader conflict between the U.K. government and Apple regarding access to encrypted cloud storage, with officials seeking a backdoor to iCloud services [5]. Group 3: Additional Legal Actions - A consumer group, Which?, has also filed a £3 billion legal claim against Apple, alleging that the company misleads customers by promoting its iCloud service while not clearly presenting alternative options [6].
Apple Loses UK Lawsuit Over 'Unfair' App Store Fees—Millions Of Users Could Get Payouts - Spotify Technology (NYSE:SPOT)