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Apple Hit with £1.5 Billion Ruling Over App Store Fees

By  |  October 23, 2025

Apple has lost a major legal battle in the United Kingdom after the Competition Appeal Tribunal (CAT) ruled that the company had abused its dominant position by imposing unfair commission fees on app developers, according to Reuters. The judgment comes in a landmark class-action lawsuit representing roughly 20 million iPhone and iPad users, with potential damages estimated at up to 1.5 billion pounds ($2.01 billion).

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    The case, led by British academic Rachael Kent, accused Apple of profiting excessively by forcing developers to use its App Store and by charging a standard 30% commission on app sales and in-app purchases. Kent argued that Apple’s control over app distribution effectively eliminated competition and inflated prices for consumers, per Reuters.

    In its decision, the tribunal agreed that Apple’s practices amounted to an abuse of market power. The CAT found that the company had excluded rival distributors and imposed “excessive and unfair prices” through its commission structure. The ruling stated that affected consumers are entitled to compensation, though the specific calculation of damages will be determined at a hearing scheduled for next month, according to Reuters.

    Related: Apple Faces New EU Antitrust Complaint Over App Store Practices

    Apple responded by announcing plans to appeal the decision. The company said the ruling “takes a flawed view of the thriving and competitive app economy” and emphasized that the App Store offers developers “a safe, trusted place to discover apps and securely make payments.”

    This case marks the first mass lawsuit against a technology giant to reach trial under the U.K.’s emerging collective action system.

    Source: Reuters