Apple Loses £1.5 Billion App Store Case In Landmark UK Ruling

Apple has been ordered to pay around £1.5 billion in damages after the UK Competition Appeal Tribunal found that the company broke UK and EU competition laws for at least ten years. The Tribunal ruled in favour of Dr Rachael Kent, a senior lecturer at King’s College London, who brought the case on behalf of 36 million UK iPhone and iPad users.

The case centred on Apple’s App Store, where all app purchases, subscriptions, and in-app payments had to go through Apple’s own system. This allowed the company to charge a 30% commission on every transaction. The Tribunal concluded that this arrangement removed competition on iPhones and iPads, resulting in users paying more than they should have.

In its judgment, the Tribunal wrote that Apple’s restrictions “cannot sensibly be justified as being necessary or proportionate” and that genuine competition would have delivered better prices and services to consumers.

Who Brought The Case?

The collective claim was led by Dr Rachael Kent, whose argument was that Apple’s control over app purchases hurt both consumers and small businesses that rely on the App Store. She was represented by law firm Hausfeld & Co LLP, along with barristers from Brick Court Chambers and Monckton Chambers.

This is the first successful collective action under the UK’s competition regime to reach trial. Dr Kent’s case has been described as a major milestone for collective consumer claims, as it opened the door for millions of users to claim compensation from a large tech company.

Her team included economic experts from firms like EconOne and AlixPartners, who analysed the overcharging caused by Apple’s 30% commission rule. They concluded that consumers lost around £1.5 billion across ten years.

How Does This Affect Apple Users?

Anyone in the UK who bought apps, paid for app subscriptions or made in-app purchases on an iPhone or iPad since 1 October 2015 could qualify for compensation. These purchases must have been made through the UK version of the App Store.

Dr Rachael Kent, the lead claimant shared commentary: “This is a landmark victory — not only for App Store users, but for anyone who has ever felt powerless against a global tech giant. The Tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years – and that up to £1.5 billion should now be returned to UK consumers and businesses.

“Every in-app purchase, subscription, and paid download was inflated by Apple’s anti-competitive practices. Those unfair fees have added up to billions for the world’s richest company, and less choice and innovation for everyone else.”

The case covers digital items bought through popular apps such as YouTube, Tinder, Fortnite, and Candy Crush. Purchases of physical goods or services, such as food deliveries from Deliveroo or rides from Uber, are not affected because Apple did not charge commission on those.

Eligible users will automatically be included in the claimant group. They can check their eligibility through their App Store account purchase history or visit the official claim website, appstoreclaims.co.uk.

Why Was Apple’s Behaviour Found Unlawful?

The Tribunal found that Apple’s App Store rules blocked other payment options and stopped developers from telling users about cheaper ways to pay. This meant Apple could charge an excessive 30% fee on every in-app transaction without competition.

Apple defended its model as necessary for maintaining security and a consistent user experience. The Tribunal rejected this defence, saying that Apple’s system was “unlawful and exclusionary” and that other payment systems could have offered the same benefits at lower costs to users.

The judgment also mentioned that fair competition would have encouraged innovation and better pricing across app platforms. Instead, Apple’s restrictions created a closed system where users were forced to pay inflated prices.

Dr Kent added: “This case proves that the UK’s collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account. Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.”