Apple Loses Landmark UK Antitrust Case Over App Store Fees

Apple has been found to have abused its dominant market position by charging unfairly high commissions to app developers, a London tribunal ruled Thursday, a major blow that could expose the US tech giant to hundreds of millions of pounds in damages.

The UK Competition Appeal Tribunal (CAT) ruled against Apple after a closely watched trial brought on behalf of millions of iPhone and iPad users in Britain. The court found that between 2015 and 2020, Apple “shut out competition” in the app distribution market and “charged excessive and unfair prices” to developers through its App Store.

Apple said it would appeal the ruling, arguing that the decision “takes a flawed view of the thriving and competitive app economy.”

The lawsuit, led by Rachael Kent, a digital economy academic at King’s College London, is valued at £1.5 billion ($2 billion). A hearing next month will determine how damages are calculated and whether Apple’s appeal can proceed.

Kent’s team argued that Apple’s “100% monopoly position” over iOS app distribution allowed it to impose restrictive terms and excessive commissions, typically 30%, on developers, a cost they say was passed on to consumers.

The tribunal agreed in part, ruling that developers had been overcharged by the difference between Apple’s commission and a fair 17.5% rate, and that roughly half of that overcharge was passed along to end users.

“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” an Apple spokesperson said.

Kent hailed the decision as a breakthrough for consumer rights:

“This sends a clear message — no company, however wealthy or powerful, is above the law,” she said.

The case is the first major class-action-style lawsuit against a tech giant to reach trial in the UK’s relatively new collective action regime, introduced a decade ago. The ruling is expected to embolden other claims already lined up against Silicon Valley heavyweights.

Next in line is Google, facing a similar challenge over Play Store commissions, with a joint case — including one from Epic Games — set for trial in October 2026.

Other tech giants, including Amazon and Microsoft, are also under scrutiny at the CAT for alleged anti-competitive practices.

The ruling comes amid a wider global crackdown on Big Tech dominance. The European Union and US regulators have both taken aim at Apple’s App Store terms, accusing the company of stifling competition and squeezing developers.