Apple abused its dominant position by charging app developers unfair commissions, a London tribunal ruled on Thursday, a blow that could leave the US tech company on the hook for hundreds of millions of pounds in damages.
The Competition Appeal Tribunal (CAT) ruled against Apple after hearing a lawsuit brought by millions of iPhone and iPad users in the UK.
Bully ruled that Apple abused its dominant position from October 2015 until the end of 2020 by foreclosing competition in the app distribution market and charging developers “excessive and unfair prices” in the form of commissions.
Apple – which has faced pressure from regulators in the US and Europe over what it charges developers – said it would appeal the ruling, which it said “takes a poor view of the growing and competitive app economy.”
This case was appreciated around 1.5 billion pounds ($2 billion) by these people. A hearing next month will decide how damages are calculated and Apple’s request for permission to appeal.
Thursday’s decision comes after Apple was the subject of a complaint to European antitrust regulators over its App Store terms and conditions, which are aimed at undercutting Big Tech.
Historic mass trial
Rachel Kent, the British academic who brought the case, argued that Apple had “grossly profited” by excluding all competition for app distribution and in-app purchases.
Their lawyers argued at the start of the trial in January that Apple’s “100% monopoly position” allowed it to impose restrictive terms and excessive commissions on app developers. Which Apple denied.
Bully said in his ruling that developers were overcharged because of the difference between the 17.5% commission for app purchases and the commission charged to Apple, which Kent’s lawyers said was typically 30%. Cat too Ruled over it App developers pass on 50% of the overcharge to users.
“This decision ignores how the App Store helps developers succeed and provides a safe, trusted place for consumers to discover and pay for apps,” an Apple spokesperson said.
A boost for the UK’s ‘class action’ regime
The case was the first large-scale case against a tech giant to be tried under the UK’s new class-action-style regime, which This year has reached its 10th anniversary and has seen several multi-billion pound cases confirmed for trial but so far with limited success for consumers.
However, several other cases are waiting in the wings, including one against Google against the commission it charges app developers for accessing its Play Store.
The case is scheduled to begin in October 2026 and will be heard alongside the same claim by Epic Games, which is engaged in parallel litigation with Apple in the US.
Fellow tech companies including Amazon and Microsoft are also facing off Remarkable Claims on Cat.
Kent said in a statement that the ruling shows that Britain’s collective action regime is working and “sends a clear message: no company, however wealthy or powerful, is above the law.”
($1 = 0.7451 pounds)
(Reporting by Sam Tobin; Editing by William James and Keith Weir)
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