Apple has suffered a significant legal defeat in the United Kingdom, with the Competition Appeal Tribunal (CAT) ruling that the tech giant abused its dominant market position by imposing unfairly high commissions on app developers. This landmark decision marks the first mass lawsuit brought under the UK’s relatively new class action-style legal framework targeting Big Tech companies, potentially paving the way for further accountability across the sector.

The tribunal found that from October 2015 through the end of 2020, Apple exercised monopoly control over the distribution of apps and in-app purchases on iPhones and iPads in the UK. The ruling determined that Apple charged excessive commissions — typically 30% — far above what would be considered a fair rate, estimated by the tribunal at 17.5%. It further concluded that app developers passed on roughly half of these commission overcharges to consumers, effectively inflating prices for millions of users.

The class action was launched by British academic Rachael Kent, who argued that Apple had made "exorbitant profits" by excluding competition in its App Store ecosystem. The case was valued around £1.5 billion ($2 billion) by those bringing the lawsuit. Following the ruling, Apple announced it would appeal, dismissing the tribunal’s findings as misrepresenting the App Store’s vibrant, competitive nature and its role in helping developers succeed.

Next month, the tribunal will hold a hearing to determine the calculation of damages and to consider Apple’s application for permission to appeal. This ruling notably offers a boost to the UK’s emerging collective action regime, which has seen a growing number of multi-billion-pound cases filed against major corporations but limited consumer victories until now. The Apple case signals that this legal mechanism can deliver outcomes against powerful companies.

The landscape of app market litigation is becoming increasingly complex and international. In the US, Apple faces ongoing legal battles with Epic Games over App Store commission policies, with a key appeal decision expected soon. Meanwhile, similar cases against Google’s Play Store commissions are set to begin in the UK in late 2026, accompanied by further claims against other tech giants like Amazon and Microsoft.

Moreover, Apple is under mounting regulatory pressure beyond the UK. In the European Union, the company is confronted with a fresh antitrust complaint from civil rights groups alleging violations of the EU’s Digital Markets Act. The complaint criticises Apple’s demands for costly guarantees from app developers as unjustifiably exclusionary, targeting the barriers faced by smaller competitors. The EU has previously fined Apple €500 million for breaching the same regulations this year.

Apple also faces scrutiny in China, where a group of iPhone and iPad users filed an antitrust complaint alleging similar monopolistic practices related to its App Store policies. These global challenges reflect a broader regulatory trend to rein in large tech platforms that have long commanded near-total control over their ecosystems.

Despite Apple’s insistence on the App Store’s benefits and competitive dynamics, regulators and courts continue to question the company’s commission practices and market power. The UK tribunal’s ruling is a landmark moment in holding Big Tech accountable and could lead to hundreds of millions of pounds in damages, while adding momentum to legal and regulatory efforts worldwide aimed at increasing competition and consumer choice in the digital economy.

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Source: Noah Wire Services