Apple loses $2B lawsuit over unfair App Store commissions
What's the story
Apple has lost a major lawsuit in the UK, after being accused of abusing its dominant position by charging an unfair 30% commission on app developers through its App Store. The Competition Appeal Tribunal ruled against the tech giant after a trial earlier this year. The case was filed on behalf of nearly 20 million iPhone and iPad users in the UK, and is worth up to £1.5 billion ($2 billion).
Legal response
Company to appeal against the ruling
In response to the tribunal's decision, Apple announced its intention to appeal. The company argued that the ruling "takes a flawed view of the thriving and competitive app economy." This case is significant as it is the first mass lawsuit against a tech giant to go on trial under Britain's new class action-style regime, with many other similar cases pending.
Case details
Apple accused of making 'exorbitant profits'
The tribunal found that Apple had abused its dominant position from October 2015 to the end of 2020 by shutting out competition in the app distribution market and charging "excessive and unfair prices" as commission to developers. Rachael Kent, a British academic who brought the case, argued that Apple had made "exorbitant profits" by excluding all competition for app distribution.
Overcharging details
Developers passed on overcharge to consumers
The tribunal ruled that developers were overcharged by the difference between a 17.5% commission for app purchases and the one Apple charged, which was usually 30%. It also found that app developers passed on half of this overcharge to consumers. An Apple spokesperson said, "This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments."
Legal precedent
Ruling could impact other tech giants
The ruling could have far-reaching implications for other tech giants facing similar lawsuits. Google is already embroiled in a case over the commission it charges app developers for access to its Play Store. The trial will begin in October 2026, alongside a similar claim by Epic Games, which is also suing Apple in the US.