Monday, October 27, 2025
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    UK Tribunal Rules Apple Abused App Store Dominance; £1.5 Billion Claim Moves to Damages Stage

    UK tribunal finds Apple abused App Store dominance; damages phase and potential appeal ahead.

    NEED TO KNOW
    • UK tribunal finds Apple abused dominance in iOS app distribution and payments; damages phase to follow.
    • Claimants estimate more than £1.5 billion in potential consumer compensation.
    • Apple says it strongly disagrees with the ruling and will seek to appeal.

    The Big Picture

    Apple lost a landmark UK class-action case after the Competition Appeal Tribunal (CAT) found the company abused its dominant position through the App Store and charged “excessive and unfair” commissions to developers, costs that were passed on to consumers. A follow-on hearing will determine damages and address Apple’s request to appeal.

    The case was brought on behalf of tens of millions of iPhone and iPad users by academic Rachael Kent, who argued Apple’s rules blocked rival app distribution and forced purchases through Apple’s own system. The tribunal’s judgment concluded Apple shut out competition in app distribution and payments, breaching competition law over a period that included 2015–2020.

    What’s New

    In its detailed findings, the tribunal said developers were typically charged up to 30% commission and found that rate to be above a fair level, with a significant portion of the overcharge borne by consumers. Claimants put the potential compensation at more than £1.5 billion. The judgment is published under neutral citation [2025] CAT 67.

    What They’re Saying

    “We thank the tribunal for its consideration but strongly disagree with this ruling, which takes a flawed view of the thriving and competitive app economy. The App Store has benefited businesses and consumers across the U.K. and provides a safe, trusted place to discover apps and make secure payments. We intend to appeal.”
    — Apple statement

    Context

    The collective action is structured under the UK’s opt-out regime, meaning affected consumers are automatically included unless they opt out. The tribunal said the claim concerns alleged exclusionary practices in “iOS app distribution services” and “iOS in-app payment services,” along with excessive pricing through headline commissions. The panel’s judgment runs hundreds of pages and addresses both market definition and pass-through of developer overcharges to end users.

    What’s Next

    The tribunal has set a subsequent hearing to determine how damages will be calculated and whether Apple receives permission to appeal — steps that will shape the timeline for any consumer payouts, the tribunal said.

    The Bottom Line

    The ruling is a major win for the class representative and sets up a consequential damages phase. Apple’s planned appeal means the legal fight over App Store rules and pricing is far from over.

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