Apple Faces £1.5 Billion UK Antitrust Ruling Over App Store Fees

Landmark Ruling Against Tech Giant

Apple has reportedly lost a groundbreaking UK class action lawsuit alleging the company imposed “excessive and unfair” charges through its App Store, according to tribunal documents released Thursday. The Competition Appeal Tribunal ruled that the Silicon Valley-based tech giant abused its dominant market position by charging developers commissions as high as 30% on App Store purchases.

Landmark Ruling Against Tech Giant
Substantial Damages at Stake
Apple’s Response and Appeal Plans
Growing Global Regulatory Pressure
Breakthrough for Class Action Claimants
Next Steps in Legal Process

Substantial Damages at Stake

The claimants indicated that approximately 36 million UK consumers could be entitled to damages totaling around £1.5 billion, sources familiar with the case revealed. In a 396-page ruling, the tribunal determined that Apple holds “near absolute market power” in both iOS app distribution and in-app payment systems. The decision stated that Apple “is abusing its dominant position by charging excessive and unfair prices” to developers.

Apple’s Response and Appeal Plans

Apple immediately announced it would appeal the decision, with company representatives stating the ruling took a “flawed view” of the mobile apps market. The tech giant argued that iPhones face “vigorous competition” and that the tribunal’s decision “overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” according to their official statement.

Growing Global Regulatory Pressure

This ruling represents the latest in a series of legal and regulatory challenges facing Apple’s lucrative services business, which analysts suggest is expected to generate more than $100 billion in revenues for the first time this year. The decision comes just one day after the UK’s antitrust agency said it would impose strict new rules on how Apple and Google operate their mobile platforms under Britain’s new digital competition law.

Apple is also reportedly contesting several aspects of the EU’s Digital Markets Act, which has compelled the iPhone maker to implement changes to its App Store operations. Additionally, the company faces significant pressure in the United States, where the Department of Justice filed a landmark antitrust case against Apple last year over alleged smartphone monopoly practices.

Breakthrough for Class Action Claimants

The CAT ruling marks a crucial victory for class action claimants following recent disappointments in similar cases. The lawsuit against Apple—led by King’s College London lecturer Rachael Kent as “class representative”—was the first such case against a major technology company to proceed to trial before the CAT. Legal analysts suggest this outcome could pave the way for more successful competition law challenges against tech giants.

Next Steps in Legal Process

The tribunal indicated that “the process for resolving any questions relating to the calculation” of damages would be determined at a subsequent hearing, potentially as soon as next month. This ruling emerges amid a wave of lawsuits launched under legislation developed a decade ago that allows mass actions over alleged breaches of competition law, though previous cases have been hampered by prolonged legal arguments over procedural matters.

App Store background information | About the Competition Appeal Tribunal

References

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