LONDON — A London tribunal has ruled that Apple abused its dominant market position by imposing unfair commissions on app developers, a decision that could potentially expose the technology giant to damages amounting to hundreds of millions of pounds.
The ruling was delivered on Thursday by the Competition Appeal Tribunal (CAT) following a trial of a lawsuit brought on behalf of millions of UK-based iPhone and iPad users. The tribunal found that from October 2015 until the end of 2020, Apple engaged in anti-competitive behavior by restricting competition in the app distribution market and by “charging excessive and unfair prices” to developers in the form of commissions.
Apple, which is facing increasing regulatory scrutiny in both the United States and Europe over its developer fees, announced it would appeal the decision. The company stated that the ruling “takes a flawed view of the thriving and competitive app economy.”
The case, which was valued by claimants at approximately £1.5 billion ($2 billion), will proceed to a hearing next month to determine the methodology for calculating damages and to consider Apple’s application for permission to appeal.
A Landmark Mass Lawsuit
The case was brought by Dr. Rachael Kent, a British academic, who argued that Apple secured “exorbitant profits” by maintaining a monopoly over app and in-app purchase distribution. Her legal team contended in the January trial that Apple’s “100% monopoly position” enabled it to enforce restrictive terms and disproportionately high commissions—an allegation Apple denied.
In its detailed ruling, the CAT determined that developers were overcharged by the difference between the commission Apple levied—which lawyers stated was typically 30%—and a fair commission rate of 17.5%. The tribunal also found that app developers passed on 50% of this overcharge to consumers.
An Apple spokesperson responded to the ruling, stating, “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.”
A Boost for the UK’s Collective Action Regime
This case represents the first mass lawsuit against a major technology company to go to trial under the UK’s relatively new class action-style regime. This system recently marked its tenth anniversary and has seen several high-value cases certified for trial, though with limited consumer victories until now.
The ruling is expected to bolster numerous other pending cases. These include a claim against Google concerning commissions on its Play Store, scheduled for October 2026, which will be heard alongside a similar claim by Epic Games. Other tech giants, including Amazon and Microsoft, also face substantial claims at the CAT.
In a statement, Dr. Kent said the verdict demonstrates that the UK’s collective action framework is functioning effectively and “sends a clear message: no company, however wealthy or powerful, is above the law.”
