Apple has been found guilty of abusing its market dominance by overcharging developers through excessive App Store commissions, according to a landmark ruling by the United Kingdom’s Competition Appeal Tribunal (CAT).
The decision, delivered on Thursday, marks a significant victory for British consumers and app makers in a class-action lawsuit valued at £1.5 billion ($2 billion). The tribunal ruled that Apple unfairly restricted competition and charged developers “excessive and unfair” fees between October 2015 and December 2020.
Apple, which has faced mounting scrutiny from regulators in both the United States and Europe, immediately vowed to appeal the ruling. The company argued that the decision “misinterprets the competitive nature of the app economy” and that the App Store “has helped developers grow while protecting users.”
‘Excessive Fees and Monopoly Power’
The case was brought by Rachael Kent, a digital economy scholar, on behalf of millions of iPhone and iPad users across the UK. Her legal team argued that Apple operated a “complete monopoly” over app distribution, enabling it to impose restrictive terms and extract up to 30% commission on sales and in-app purchases — far higher than the 17.5% the tribunal deemed fair.
According to the ruling, half of the overcharges to developers were passed on to consumers in the form of inflated prices for apps and digital content.
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“This judgment sends a clear message: no matter how powerful a corporation is, it must answer for anti-competitive practices,” Kent said following the verdict. She added that the case proves Britain’s collective action system can hold major tech firms accountable.
Apple’s Response and Industry Implications
In its defense, Apple maintained that its App Store model ensures a secure and trusted platform for both developers and users. “This decision overlooks how the App Store supports innovation and provides a safe digital marketplace,” the company said in a statement.
The tribunal’s next hearing, scheduled for next month, will determine the method for calculating damages and decide whether Apple’s appeal can proceed.
The ruling also comes as Apple faces growing challenges from regulators worldwide. Earlier this year, European antitrust authorities launched new investigations into its app distribution rules under the Digital Markets Act, which seeks to limit Big Tech’s control over digital ecosystems.
A Landmark in UK Class Actions
This case marks the first major tech-related mass lawsuit to go to trial under the UK’s collective proceedings regime, which turned ten this year. The mechanism allows large groups of consumers to seek compensation for anti-competitive behavior.
Several other cases are already lined up, including one against Google over fees in its Play Store, due for trial in October 2026. Similar claims have been filed by Epic Games, which is also locked in a long-running legal dispute with Apple in the US.
Tech giants such as Amazon and Microsoft are facing comparable suits at the CAT, as regulators intensify scrutiny of digital monopolies.
The tribunal’s decision is expected to have wide-ranging consequences for Apple’s global business model, which heavily depends on its App Store commissions for revenue.
