Apple’s grip on its App Store policies has been challenged in a landmark U.K. decision, with the Competition Appeal Tribunal ruling that the company abused its dominance by extracting unfairly high commissions from app developers. As reported by Reuters, the tribunal found that Apple’s actions between October 2015 and December 2020 unfairly shut out competition in the app distribution market. The company now faces the prospect of hundreds of millions of pounds in damages, with the case valued at up to £1.5 billion ($2 billion).
The CAT’s judgment concluded that Apple’s commission rates—typically around 30%—were excessive compared to what a fair market rate might have been. Rachael Kent, the British academic who spearheaded the class action, argued that Apple’s “100% monopoly position” over iPhone and iPad app distribution allowed it to impose restrictive terms and extract “exorbitant profits”.
According to the ruling, app developers were overcharged by the difference between a 17.5% benchmark commission and the higher rates Apple charged. The tribunal also found that half of this overcharge was passed on to consumers, meaning millions of iPhone and iPad users in the UK could be eligible for compensation.
Apple quickly pushed back against the ruling, calling it misguided. “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” an Apple spokesperson said. Apple plans to appeal, claiming the tribunal “takes a flawed view of the thriving and competitive app economy.”
The case marks a historic first under the UK’s relatively new class action-style legal regime, which allows large groups of consumers to pursue collective claims against major corporations. Legal experts say the ruling could open the door to a wave of similar actions targeting other tech giants.
Indeed, the CAT is already reviewing other high-profile cases—including one against Google over its Play Store commission structure, set for trial in October 2026, alongside a similar claim from Epic Games. Rachael Kent welcomed the ruling, saying it “sends a clear message: no company, however wealthy or powerful, is above the law.”
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