Apple Faces £1.5bn UK Damages Over ‘Unfair’ App Store Prices
Apple may have to pay up to £1.5 billion in damages after a UK court ruled that it overcharged iPhone and iPad users through “excessive and unfair” App Store fees.
The Competition Appeals Tribunal found that Apple abused its dominant position by imposing a 30% commission on app sales and in-app purchases.
The case was brought by Dr Rachael Kent, representing around 36 million UK users who purchased apps, subscriptions, or digital content via the App Store.
Her legal team described the ruling as the first successful collective action of its kind in the UK.
Dr Kent called it a “landmark victory”, adding that the decision sends a clear message that “no company, however wealthy or powerful, is above the law.”
Apple said it strongly disagreed with the tribunal’s findings and plans to appeal.
In a statement, the company argued that the court had taken a “flawed view” of what it described as a “thriving and competitive app economy.”
Apple added that 85% of apps on its store pay no commission, and small developers already benefit from a reduced rate through its Small Business Program.
The ruling comes just one day after the Competition and Markets Authority (CMA) classified Apple and Google as holding “strategic market status”, meaning both firms wield significant power over mobile ecosystems.
This could eventually force Apple to open up iPhones to rival app stores in the UK in a major shift from its traditionally closed system.
Law firm Hausfeld & Co. LLP, representing the claimants, confirmed that any UK iPhone or iPad user who bought paid apps, subscriptions, or in-app content through Apple’s store since October 2015 could be eligible for compensation.
However, the exact payouts are yet to be determined.