London, October 23, 2025 — In a major legal setback, Apple Inc. has lost a landmark UK antitrust lawsuit over App Store commissions after a London tribunal ruled that the tech giant abused its dominant market position and charged unfair, excessive fees to app developers.
The Competition Appeal Tribunal (CAT) found that Apple’s practices between October 2015 and December 2020 unfairly shut out competition and inflated prices for both developers and consumers. The ruling opens the door for potential damages worth up to £1.5 billion ($2 billion), marking one of the most significant antitrust decisions in British legal history against a U.S. technology company.
Apple Found Guilty of Abusing Market Power
The tribunal concluded that Apple’s App Store operated as a monopoly in the iOS app distribution market, giving Apple complete control over how apps are sold and how in-app purchases are processed.
According to the judgment, Apple imposed “excessive and unfair prices” on app developers through its commission system, which charged between 27% and 30%, significantly higher than a competitive rate of around 17.5%.
The tribunal also determined that half of these overcharges were passed on to consumers, meaning millions of iPhone and iPad users in the UK may have unknowingly paid inflated prices for apps and in-app purchases.
Apple to Appeal the Tribunal’s Decision
In response, Apple issued a statement rejecting the findings and confirmed plans to appeal the ruling.
“This ruling takes a flawed view of the thriving and competitive app economy,” an Apple spokesperson said. “The App Store has helped millions of developers succeed and provides users with a safe, trusted environment to download apps securely.”
Apple has long argued that its fees fund essential services such as app security, fraud prevention, and platform innovation. However, critics — and now the UK tribunal — say those justifications fail to explain the scale of Apple’s profits and its anti-competitive restrictions on developers.
A Historic Case for the UK’s Class Action Regime
The lawsuit, led by Rachael Kent, a digital economy expert at King’s College London, was the first-ever mass consumer case to reach trial under the UK’s collective action framework.
Kent alleged that Apple’s “100% monopoly position” on app distribution allowed it to impose restrictive terms on developers and extract exorbitant profits.
In a statement following the ruling, Kent said:
“This decision proves that no company, no matter how powerful, is above the law. The ruling is a victory for fairness and accountability in the digital economy.”
The CAT’s judgment is expected to influence future cases against other Big Tech companies facing similar accusations in the UK and EU.
Impact on Global Tech Regulation
The decision comes as regulatory pressure intensifies globally against Apple’s business model. Both U.S. and European authorities have accused the company of violating antitrust laws through App Store exclusivity and high developer fees.
In Europe, Apple is already under investigation for violating the Digital Markets Act (DMA) — a sweeping law designed to curb the power of dominant tech platforms.
This UK ruling could further embolden regulators to impose tougher compliance requirements on Apple and other giants such as Google, Amazon, and Microsoft, all of which face pending competition lawsuits in the Competition Appeal Tribunal (CAT).
Next Steps: Damages Hearing and Wider Implications
A separate hearing next month will determine how compensation will be calculated and whether Apple will be granted permission to appeal the ruling.
Legal experts say the case could set a powerful precedent for consumers and app developers worldwide, especially as more collective lawsuits target Big Tech’s profit-sharing models.
Meanwhile, a parallel lawsuit against Google over Play Store fees is scheduled for October 2026 and will be heard alongside Epic Games’ claim — the same developer that previously fought Apple in the United States over in-app payment restrictions.
Consumer and Developer Reactions
Developers and consumer advocates have welcomed the ruling as a watershed moment for digital fairness. Many hope it will force Apple to lower its commissions, open its ecosystem to third-party app stores, and increase transparency in how fees are determined.
Apple’s critics argue that its closed ecosystem stifles competition, limits innovation, and ultimately costs consumers more.
“This case sends a strong message that digital monopolies must answer to the law,” said Kent. “The UK has taken a major step toward fairer digital markets.”
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