Apple has suffered a major legal defeat in the United Kingdom after the Competition Appeal Tribunal (CAT) ruled that the company abused its dominant position in the digital app market by overcharging millions of iPhone and iPad users for apps and in-app purchases.
The ruling, issued this week, sided with Dr Rachael Kent, a senior lecturer at King’s College London, who filed the collective lawsuit Kent v Apple on behalf of nearly 36 million UK consumers and small businesses. The tribunal found that Apple’s App Store policies resulted in “excessive and unfair pricing” over a ten-year period, amounting to a breach of UK competition law.
In its judgment, the tribunal concluded that Apple had imposed “exclusionary practices” and “unjustified restrictions” that stifled competition and forced users to pay inflated fees. As a result, consumers who purchased paid apps, subscriptions, or digital content through the App Store since 1 October 2015 may now be eligible for compensation, with potential payouts totalling up to £1.5 billion.
Calling the decision a “landmark victory,” Dr Kent said the ruling was a triumph for fairness and accountability in the digital economy. “The tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years,” she said. “Those inflated fees have added up to billions for the world’s richest company — and less choice and innovation for everyone else.”
Dr Kent also noted that the case demonstrates the power of the UK’s collective action system to “empower ordinary people and small businesses to hold even the most powerful corporations to account.” She becomes the first woman in the UK to successfully lead a consumer collective claim.
At the centre of the case is Apple’s long-standing practice of charging developers a 30% commission on all app purchases and in-app payments made through its platform. Critics argue this policy gives Apple an unfair monopoly over app distribution and limits consumer choice by forcing developers to use its proprietary payment system.
In its findings, the tribunal said Apple’s justifications for these restrictions “cannot sensibly be justified as being necessary or proportionate,” adding that greater competition would lead to “better value and more innovation” for consumers. The ruling applies specifically to digital goods such as games, streaming services, and music platforms, excluding physical transactions like Uber or Deliveroo orders.
Apple said it “strongly disagreed” with the decision and confirmed plans to appeal. A company spokesperson told the BBC that the App Store provides “a secure and trusted marketplace for users and developers alike.”
The decision adds to Apple’s growing list of global antitrust battles, with regulators in the US and EU also investigating its App Store practices. Legal experts say the UK ruling could reshape digital marketplace regulation and set a precedent for future consumer class actions against major tech firms.
