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Apple could be forced to pay up to £1.5 billion in damages after losing a landmark collective legal action brought on behalf of 36 million iPhone and iPad users across the UK.
The Competition Appeals Tribunal ruled that Apple had abused its dominant market position by charging “excessive and unfair” 30% commissions on app sales and in-app purchases through its App Store. This practice, the tribunal said, led consumers and businesses to overpay for apps, subscriptions, and digital content.
The case was led by Dr. Rachael Kent, an academic who described the outcome as a “landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant.” Her legal team said it was the first collective claim of its kind to succeed under the UK’s competition law regime.
The decision comes just one day after the Competition and Markets Authority (CMA) designated both Apple and Google as having “strategic market status,” a label that could compel Apple to allow rival app stores on iPhones — a major change to its long-standing closed ecosystem.
Apple, however, has vowed to appeal the decision. The company argued that 85% of all apps on its App Store are free and therefore pay no commission. It also defended its commission model, calling the App Store “a thriving and competitive app economy” that benefits both developers and consumers.
Apple’s statement added: “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.”
According to Dr. Kent’s legal representatives, any UK user who purchased paid apps, subscriptions, or in-app digital content via the UK version of the App Store since October 1, 2015 may be entitled to compensation. The exact amount per individual claimant is yet to be determined.
