Apple has lost a major legal battle in the United Kingdom after a London tribunal ruled that the company abused its dominant position in the app distribution market by charging developers unfair commissions. The decision marks a landmark victory for consumers and developers — and could see Apple paying out hundreds of millions of pounds in damages, according to Reuters.
The Competition Appeal Tribunal (CAT) issued its ruling on Thursday following a trial that began in January. The case was brought on behalf of millions of iPhone and iPad users by British academic Rachael Kent, who alleged Apple made “exorbitant profits” by shutting out competition for app distribution and in-app purchases.
The CAT found that Apple had “abused its dominant position” between October 2015 and the end of 2020 by charging “excessive and unfair prices” in the form of developer commissions — typically around 30%. The tribunal ruled that developers were overcharged by roughly 12.5%, passing about half of that cost on to consumers.
In a statement, an Apple spokesperson said: “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.” The company confirmed it will appeal the decision, arguing that the tribunal’s findings “take a flawed view of the thriving and competitive app economy.”
Kent, meanwhile, called the verdict “a clear message that no company, however wealthy or powerful, is above the law,” adding that it demonstrates Britain’s burgeoning collective action system “is working.”
While the lawsuit had been valued at £1.5 billion (around $2.8 billion CAD) by the plaintiffs, the exact amount Apple will have to pay in damages will be determined at a hearing scheduled for next month.
This marks the first major tech-focused class action to reach trial under the U.K.’s decade-old collective action regime — and it may not be the last. A similar claim against Google over its Play Store fees is slated to be heard by the CAT in October 2026.
Apple’s App Store commissions have long drawn scrutiny from regulators and courts worldwide. The company remains locked in an ongoing legal battle with Fortnite developer Epic Games, which continues to shape the App Store’s global payment policies. The iPhone maker reportedly earned more than $10 billion USD (about $14 billion CAD) in App Store commissions from the U.S. alone in 2024.
With mounting regulatory pressure and another major appeal looming, Apple’s long-defended App Store business model may soon face even tougher challenges in Europe and beyond.
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