Apple (AAPL) Loses UK Class Action Lawsuit, Faces $2B in Potential Damages

Apple (AAPL) has suffered a legal defeat in the United Kingdom, with the Competition Appeal Tribunal (CAT) ruling that the company abused its market dominance by imposing a 30% commission on app developers through its App Store. The class-action lawsuit, representing approximately 20 million UK iPhone and iPad users, could result in damages of up to £1.5 billion ($2 billion). The CAT determined that Apple’s commissions were “excessive and unfair,” and restricted alternative purchasing options.

Apple intends to appeal the decision, calling the ruling “flawed” and defending the App Store as a secure platform for both developers and consumers. However, this ruling coincides with increased scrutiny of Apple’s practices, as the UK’s Competition and Markets Authority recently designated Apple and Google (GOOGL) as having “strategic market status,” potentially opening their platforms to rival app stores.

Furthermore, Apple is facing antitrust investigations in the U.S. and Europe, with the Digital Markets Act (DMA) in Europe pushing for reduced anti-competitive behavior. Despite these legal challenges, Wall Street analysts maintain a Moderate Buy consensus rating for Apple stock, with an average price target suggesting a modest upside potential.

(Source：TipRanks)