Apple has lost a landmark UK class action that challenged its long-standing 30% App Store commission, with the Competition Appeal Tribunal (CAT) finding the fee “unfair” and ruling that affected consumers are entitled to damages.
The case, brought on behalf of roughly 20 million iPhone and iPad users, could see Apple ordered to pay up to £1.5 billion ($2.01 billion).
Apple said it would appeal, setting the stage for another round in a dispute that has rattled the tech world.
What the UK tribunal found
The tribunal concluded that Apple had abused its dominant position in the UK apps market by imposing excessive and exclusionary conditions on developers, chiefly the requirement that in-app purchases route through Apple’s own billing system and that apps be distributed only via the App Store.
Claimants argued that those rules let Apple extract a roughly 30% surcharge that was passed on to consumers; the CAT agreed the conduct amounted to unfair pricing and anti-competitive behaviour.
The claim, led by class representative Dr Rachael Kent and advanced by litigation funders and specialist firms, is unusual both for its scale and for being one of the first major tests of the UK’s newer collective action procedures against a tech giant.
The trial drew intense scrutiny earlier this year when Apple’s executives, including finance witnesses, were called to defend how the company allocates costs and justifies App Store fees.
Apple countered that its commission funds security, curation, and a developer ecosystem that benefits users; the company said the ruling mischaracterises the App Store’s role.
What happens next: Appeals, damages and wider ripples
Practically, the CAT has confirmed liability but left the exact quantum of damages to a later hearing: judges will return next month to decide how much each affected user should receive and the method for calculating compensation.
That follow-up will involve complex econometric work to estimate how much of the developer charge was passed on to consumers and over what period, a process that could span months and potentially reduce the headline figure depending on methodology.
Apple said it will appeal the finding, signalling more litigation ahead.
If the appeal fails and damages are confirmed, the ruling could become a blueprint for other class actions and regulatory action in Europe and beyond, potentially changing how app platforms price services and how developers negotiate distribution.
Regulators and rival platforms will be watching closely: the case underscores simmering global pressure on the gatekeepers of mobile ecosystems to open up competition and reconsider entrenched fee models.
For now, consumers and developers have won a procedural victory and the prospect of compensation, but the ultimate outcome will depend on detailed damage calculations and the appellate path Apple chooses.
Either way, the decision is likely to deepen the debate over where to draw the line between platform stewardship (security and curation) and monopolistic gatekeeping.
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