In the United Kingdom, a competition tribunal has delivered a ruling that Apple charged excessive and unfair app store fees to developers. Lawyers involved in the case believe that this could potentially result in a £1.5 billion compensation pay-out to consumers and businesses who subsequently overpaid.
The lawsuit was heard by the Competition Appeal Tribunal (CAT) after being brought by academic Rachael Kent as a collective action for consumers against the company.
Complaints surround app commission fees charged by Apple for purchases made on iPhones or iPads since 1 October 2015.
In its judgement, the CAT found Apple abused its “dominant position by charging excessive and unfair prices” in commission to developers for iOS app distribution and in-app purchases.
Kent’s legal company Hausfeld & Co described the ruling as a “landmark legal victory for UK consumers” which “paves the way for £1.5 billion in compensation to be returned to nearly 36 million UK consumers and businesses”.
“The Tribunal found that Apple’s dominance of the App Store allowed it to shut out competition, stifle innovation and impose inflated fees on app developers, costs that were ultimately passed on to users,” it noted in its assessment of the decision, highlighting the company had broken European Union and UK laws.
BBC News and Reuters reported Apple planned to appeal the decision.
The CAT plans to hold a hearing “on the first convenient date after 3 November 2025”, with parties to discuss any appeals, costs and other consequential issues.
Apple’s policies for app distribution on its devices are also piquing the interest of the UK Competition and Markets Authority, which this week designated Apple and Google as having strategic market status for their respective operating systems.
The CMA’s move potentially opens the way to tougher regulation across a range of areas including app distribution if it feels open competition is lacking.
Source: Mobile World Live
Image Credit: Apple
