Apple is attempting to overturn a landmark £1.5 billion ($2.77 billion CAD) U.K. court ruling that found the company overcharged millions of customers through its App Store, a case that could ultimately see payouts to nearly every iPhone user in the country who bought apps or in-app purchases over the past decade. The development was first reported by The Guardian, which noted Apple has now formally applied to the U.K. Court of Appeal to challenge the decision.
The original ruling, handed down in October, found that Apple abused its dominant position in app distribution by charging what a London tribunal deemed excessive commissions. The case was brought by Dr. Rachael Kent of King’s College London on behalf of roughly 36 million U.K. consumers, marking one of the largest consumer competition cases ever heard in the country. If Apple’s appeal fails, anyone in the U.K. who made App Store purchases between 2015 and 2024 could be entitled to compensation.
At the heart of the case is Apple’s long-criticized commission structure, often referred to by campaigners as the “Apple tax.” While Apple argues most developers now pay a reduced 15% commission, the competition appeal tribunal ruled that fairer rates would be closer to 17.5% for app sales and 10% for in-app purchases. The decision was widely viewed as a turning point in the U.K.’s approach to Big Tech regulation.
This case is just one part of a broader wave of collective actions heading toward trial in 2026. Consumers and developers are collectively seeking more than £6 billion ($11.08 billion CAD) in damages from Apple and Google, alleging anticompetitive practices across app stores and digital services. Separate lawsuits are also targeting Apple’s iCloud service, accusing the company of effectively trapping users inside its ecosystem.
Apple, for its part, strongly disagrees with the ruling, calling it flawed and arguing that the App Store supports a “thriving and competitive app economy.” The company has warned that such cases risk undermining a system it says has driven more than £41 billion ($22.2 billion CAD) in U.K. app billings in 2024 alone.
Still, legal experts say momentum is shifting. As consumers become more aware of how platform fees affect their digital lives, pressure is mounting on regulators and courts to rein in dominant tech players. Apple’s appeal may slow the process, but it’s unlikely to stop the broader reckoning facing the app economy in the U.K. and beyond.
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