Apple has lost a landmark UK lawsuit over “unfair” App Store fees, leaving the tech giant facing up to £1.5 billion in damages and potential regulatory changes that could open iPhones to rival app stores.
Apple faces a potential £1.5 billion payout after losing a landmark UK legal case that found the company had abused its dominant position through “excessive and unfair” App Store pricing.
The ruling by the Competition Appeals Tribunal (CAT) comes after a collective legal action brought on behalf of around 36 million iPhone and iPad users by academic Dr Rachael Kent, who argued Apple’s standard 30 per cent commission on paid apps and in-app purchases led to inflated prices for UK consumers and businesses.
Dr Kent hailed the decision as “a landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant,” adding that it “sends a clear message: no company, however wealthy or powerful, is above the law”.
The tribunal’s decision follows a separate move by the Competition and Markets Authority (CMA), which recently designated both Apple and Google as holding “strategic market status”.
The designation could force Apple to allow rival app stores on iPhones in the UK – a significant shift from its tightly controlled, closed App Store ecosystem.
In a statement to the BBC, Apple said it “strongly disagreed” with the ruling, arguing it took a flawed view of a “thriving and competitive app economy”.
The company maintained that 85 per cent of apps pay no commission, and that its system provides a “safe, trusted place” for users to discover and pay for apps. Apple confirmed it plans to appeal the decision.
If upheld, the ruling could see millions of UK consumers eligible for compensation dating back to October 2015.
Apple loses landmark UK App Store lawsuit which could cost tech giant 1.5bn GBP
