Apple faces £1.5B payout after losing UK App Store case

Steven

Apple faces £1.5B payout after losing UK App Store case

Summary

Apple could be liable for claims totalling around £1.5 billion after the UK Competition Appeal Tribunal ruled that its closed App Store systems led to overcharging of developers and, ultimately, users. The collective action was brought on behalf of some 36 million UK iPhone and iPad users, including consumers and enterprises.

The court found that Apple charged headline commissions of 30 per cent for in-app payments and imposed charges in the iOS app distribution and in-app payment services markets. A unanimous judgement concluded Apple overcharged developers and that a portion of those costs was passed on to device users. Successful claimants may be eligible for 8 per cent interest on damages awarded.

Dr Rachael Kent, who led the action, called the decision a “landmark victory” for App Store users. Apple said it disagrees with the ruling, defended the App Store as beneficial for developers and consumers, and confirmed it will appeal.

Key Points

  1. The Competition Appeal Tribunal found Apple overcharged developers via its closed App Store model, with potential claims estimated at ~£1.5bn.
  2. The collective claim represents about 36 million UK iPhone and iPad users (both consumers and businesses).
  3. Apple’s 30% headline commission on in-app payments and its control over iOS app distribution were central to the court’s findings.
  4. The tribunal ruled the overcharge to developers was in part passed on to users; claimants could receive 8% interest on damages.
  5. Apple says it will appeal, arguing the App Store supports developers and provides a safe marketplace with valuable privacy and security protections.

Why should I read this?

Short version: if you buy or sell apps on iPhone or iPad, this ruling could change how fees and choices work — and it might cost Apple a lot of money. Big precedent here for challenges to closed app ecosystems. We’ve skim-read the legal bits so you don’t have to.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/24/uk_class_action_apple/