Apple has settled another of its mounting court cases, and in an awkward turn, the tech giant has lost out and could be about to fork over billions to its customers.
As one of the big five alongside Microsoft, Alphabet (Google), Amazon, and Meta (Facebook), Apple is a goliath of the tech world. Coming a long way from the release of the Apple I way back in July 1976, Apple is worth $3.85 trillion at the time of writing and has a slew of products ranging from MacBooks to iPads, iPhones to the Apple Vision Pro.
If that wasn't enough, it even has its own streaming service that churns out stellar shows like Severance and the upcoming Pluribus from Breaking Bad's Vince Gilligan.
Announced in London on October 23, the Competition Appeal Tribunal ruled that Apple has 'abused' its dominant position in the market through the use of its App Store.
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Accused of overcharging developers and blocking out rivals, Apple takes a hefty cut of App Store purchases.
Away from those who could claim compensation over the case of Siri spying on us, anyone who's used the App Store in the United Kingdom could now be entitled to up to £75 ($100).
The case was brought forward on behalf of 20 million British iPhone and iPad users, totalling a potential £1.5 billion ($2 billion) payout.
Despite Apple's worth, this is hardly small change, meaning the company has said it will appeal.
Bearing in mind, this case comes shortly after Which? brought forward its own claim that similarly accused Qualcomm of holding market power, suggesting that Apple and Samsung users could be in for another payout.
Rachael Kent, a lecturer at King’s College London, led the case and accused Apple of making “exorbitant profits” from app distribution and in-app purchases. The ruling comes after years of jostling with the likes of Spotify and Epic Games over Apple's cut of in-app purchases, which you might remember led to the hotly contested Apple vs Epic case involving Fortnite.
Kent applauded the decision, saying: "This case proves that the UK’s collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account.
"Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.”
Still, Apple has vowed to fight, with its own statement saying: "We thank the tribunal for its consideration but strongly disagree with this ruling, which takes a flawed view of the thriving and competitive app economy.
“The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections – giving developers and consumers many options in how they build, share, and download apps...We intend to appeal.”
Apple continues to battle litigation in the United Kingdom, with this being another twist of the knife as it continues to jostle with the courts over privacy rules.
The British government famously told Apple to bring down guardrails on its iCloud encryption, but in response, Apple has pulled its advanced data-protection from the United Kingdom.