Apple loses UK lawsuit over unfair 30% App Store commissions: What we know

In a landmark hearing under Britain's new class action style litigation, Apple on October 23 lost a London lawsuit which accused the tech giant of abusing its dominance by charging app developers an unfair 30 per cent commission through the App Store, according to a Reuters report.

The case, heard by the Competition Appeal Tribunal (CAT) ruled that Apple abused its position, shut out competition, and charged “excessive and unfair” prices from developers. The case was brought to court in early 2025, on behalf of about 20 million (2 crore) iPhone and iPad users in the UK for up to 1.5 billion pounds ($2.01 billion).

Notably, this is the first hearing under Britain's new mass lawsuit regime, and will likely serve as precedence for pending hearings, it added.

Apple loses UK lawsuit over app store commissions: What we know

• During the hearing, British academic Rachael Kent, who brought the case to the courts, accused Apple of making “exorbitant profits” by excluding all competition for the distribution of apps and in-app purchases, as per the report.
• In its judgement, the CAT stated that Apple had abused its dominant position by shutting out competition in the app distribution market and by “charging excessive and unfair prices in the form of the commission which it charges developers”, it said.
• Further, the court deemed the claimants entitled to damages.
• How much damages are to be paid is to be determined in another hearing set for November, as per the report.

How has Apple responded to the ruling?

“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 told Reuters.

Apple added that it would appeal against the ruling, as it “takes a flawed view of the thriving and competitive app economy”, as per the report.

Notably, the US tech giant is facing increasing pressure from regulators in its home country and Europe over anti-trust charges. Several allegations have been raised over the fees its charges developers. Google is also facing similar charges in Europe and India.

(With inputs from Reuters)