According to MacRumors, Apple was just denied permission to appeal a UK Competition Appeal Tribunal ruling from October that found its App Store commission practices unlawful. The case involves over 1,500 UK developers who claim Apple charged excessive commissions on paid apps and in-app purchases. The tribunal ruled Apple holds a monopoly over iPhone app distribution and that its commission structure led to higher consumer prices. The judgment specifically cited Steve Jobs’ 2008 statement that Apple didn’t intend to profit from the App Store, contrasting it with current practices. This latest hearing established methodology for calculating compensation while denying Apple’s appeal request. The potential damages could exceed $1 billion affecting both developers and consumers.
The UK App Store Battle Heats Up
Here’s the thing about this ruling – it’s not just another regulatory headache for Apple. The UK tribunal basically said developers have “no economically viable alternative” to the App Store, which is a pretty damning monopoly finding. And they’re using Apple’s own words against them, referencing that 2008 Steve Jobs comment about not planning to profit from the store. Ouch.
What’s really interesting is the timing. We’re seeing this unfold while Apple’s fighting similar battles in the EU and facing pressure in the US. But the UK approach feels different – they’re going straight for the compensation angle rather than just forcing policy changes. The fact that they’re already working on damage calculation methodology tells you they’re serious about making Apple pay up.
What This Actually Means for Developers
So what changes for UK developers? Well, immediately? Nothing yet. Apple can still apply directly to the Court of Appeal. But the denial of permission to appeal at this level suggests the tribunal thinks their original ruling is pretty solid. If this stands, we’re looking at potentially massive refunds for commissions paid over years.
Think about it – over 1,500 developers represented, potentially $1 billion in damages. That’s not just pocket change, even for Apple. And this could set a precedent for other markets too. When you’ve got a major economy like the UK calling your commission structure unlawful, other regulators tend to pay attention.
The Bigger Picture for Apple
Apple’s facing this perfect storm where their historical statements are coming back to haunt them. That Jobs comment from 2008? It’s being used as evidence that they’ve strayed from their original mission. And honestly, can you blame the regulators? When you control both the hardware and the software distribution, and you’re taking up to 30% commissions, questions about monopoly power become inevitable.
The company’s now in this awkward position where they’re making minor concessions in some markets while fighting tooth and nail in others. But the pressure’s building from all sides. At some point, they might have to accept that the 30% commission model just isn’t sustainable in today’s regulatory environment.
Look, I get why Apple’s fighting this – the App Store is an incredibly profitable business. But when multiple major markets are questioning your practices, maybe it’s time to rethink the approach rather than just fighting every battle in court.
