Apple suffered a major legal defeat in the United Kingdom after the Competition Appeal Tribunal (CAT) ruled that the tech giant abused its dominant market position by imposing unfair commission fees on app developers. The tribunal’s verdict could expose Apple to hundreds of millions of pounds in damages, adding to its growing list of global regulatory challenges.
Tribunal Says Apple Overcharged Developers and Restricted Competition
According to CAT’s judgment, Apple unfairly leveraged its dominance in the app distribution market between October 2015 and December 2020. The tribunal found that Apple shut out competition and charged excessive commissions — up to 30 percent — to app developers distributing applications through its App Store.
The court determined that developers were overcharged compared to a benchmark 17.5 percent fair commission rate, with approximately 50 percent of the overcharge passed on to consumers. This effectively means that millions of iPhone and iPad users in the UK may have paid inflated prices for app purchases and subscriptions, Reuters reports.
Apple Denies Wrongdoing, Plans to Appeal
Apple swiftly rejected the tribunal’s findings, claiming the ruling “takes a flawed view of the thriving and competitive app economy.” A company spokesperson defended Apple’s practices, saying that the App Store provides developers a safe and trusted platform to reach global audiences and offers consumers a secure marketplace for app discovery and payments.
The U.S. tech giant confirmed it will appeal the decision, which could delay potential damages payments. A follow-up hearing next month will determine how compensation will be calculated and whether Apple will be granted permission to appeal.
Lawsuit Could Cost Apple Up to £1.5 Billion
The collective action lawsuit — brought by Rachael Kent, a British academic — was valued at £1.5 billion ($2 billion). Kent’s legal team argued that Apple’s monopoly over app distribution and in-app payments allowed it to impose “restrictive and exploitative” terms, squeezing developers while inflating prices for consumers.
Rachael Kent hailed the tribunal’s decision as a milestone victory for consumers and the UK’s class action framework, saying it “sends a clear message that no company, however powerful, is above the law.”
A Blow to Apple’s Global App Store Business Model
This ruling is a significant setback for Apple, which has faced mounting antitrust pressure in the United States, European Union, and other jurisdictions over similar issues related to its App Store policies.
In the European Union, regulators fined Apple for anticompetitive behavior in the music-streaming market, citing restrictive “anti-steering” rules that prevented developers from directing users to cheaper payment options outside the App Store.
In the United States, Epic Games continues its legal battle against Apple over the same App Store policies.
The UK’s Competition and Markets Authority (CMA) has also been scrutinizing Apple’s dominance in the mobile browser and app distribution markets.
Together, these cases paint a picture of systemic control and overreach by Apple — accusations that could force the company to restructure its App Store practices or face mounting financial and reputational costs.
Boost for UK’s Emerging Class Action Regime
The Apple case marks the first major Big Tech class action lawsuit to reach trial under the UK’s decade-old collective action system. The ruling is seen as a test case for other pending lawsuits, including a similar one targeting Google’s Play Store commission structure, scheduled for trial in October 2026.
Legal experts believe this ruling will embolden more collective claims against tech giants, potentially opening the door for billions in future damages across the digital economy.
Outlook: Apple Faces Mounting Global Scrutiny
With mounting pressure from regulators in Europe, the UK, and the United States, Apple’s tightly controlled App Store ecosystem faces unprecedented legal risks. If the CAT’s ruling is upheld, it could set a global precedent for developers and consumers seeking to challenge Big Tech’s monopolistic practices.
While Apple insists that its App Store enhances security and competition, courts and regulators increasingly view its model as a profit-driven gatekeeping mechanism—one that limits choice, stifles innovation, and inflates prices.
Apple faces scrutiny in other markets
The European Commission fined Apple about €1.8 billion (~US $2 billion) in March 2024 for abusing its position in the distribution of music-streaming apps — specifically for restricting app developers from informing users about cheaper alternatives outside the App Store.
In April 2025 under the Digital Markets Act (DMA), the EC fined Apple €500 million for “anti-steering” practices — limiting developers’ ability to direct users out of the App Store to cheaper payment methods, CNBC reports.
In Germany, the Federal Cartel Office (Bundeskartellamt)’s assessment that Apple is a “company of paramount cross-market significance” was upheld by the Federal Court of Justice in March 2025 — placing Apple under stricter abuse-control rules in Germany.
Apple publicly warned that some AI/features would not launch in the EU in 2024 because of the regulatory burdens imposed by the DMA.
Australia
A federal court in Australia ruled in August 2025 that Apple’s prohibition on sideloading (installing apps outside the App Store) and restriction on alternate payment methods violated the Competition and Consumer Act by substantially lessening competition. ABC report said.
Apple disputes the definition of the relevant market and the assertion of monopoly, but the ruling forces Apple’s policies under scrutiny in that market.
India
The Competition Commission of India (CCI) has found that Apple may have abused its dominant position in the iOS-app store market in India, particularly by mandating use of its proprietary in-app payment system and blocking alternative payment processors.
Baburajan Kizhakedath
