Apple has lost a major competition case in the UK after the Competition Appeal Tribunal (CAT) ruled that the company abused its dominant position in the digital app marketplace by overcharging millions of iPhone and iPad users for apps and in-app purchases.
The tribunal found in favour of Dr Rachael Kent, a senior lecturer at King’s College London, who brought the collective action lawsuit Kent v Apple on behalf of nearly 36 million UK consumers and businesses. The CAT concluded that Apple’s practices led to excessive and unfair pricing over a ten-year period.
The court ruled that Apple had “imposed exclusionary practices” and charged “excessive and unfair fees” on App Store purchases and subscriptions, violating competition law.
Dr Kent’s case marks a significant legal milestone as the first successful collective action of its kind under the UK’s consumer competition framework — and makes her the first female Class Representative in a UK collective claim.
The ruling means that anyone who purchased paid apps, digital subscriptions or in-app content through the Apple App Store since 1 October 2015 could be entitled to compensation. The total payout is estimated at up to £1.5 billion.
“This is a landmark victory – not only for App Store users, but for anyone who has ever felt powerless against a global tech giant,” said Dr Kent.
“The tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years. Those inflated fees have added up to billions for the world’s richest company, and less choice and innovation for everyone else.”
She added that the decision proved the UK’s collective action regime is working to “empower ordinary people and small businesses to hold even the most powerful corporations to account.”
Typically, Apple charges a 30% commission on app purchases, subscriptions and digital content sold through its App Store — a system critics say limits competition by forcing developers to use Apple’s in-house payment infrastructure.
In its judgment, the tribunal said Apple’s restrictions “cannot sensibly be justified as being necessary or proportionate”, ruling that greater competition would provide better value and choice for consumers.
The ruling applies only to digital goods and services — such as games, music, and streaming apps — and excludes physical transactions like those made through Uber or Deliveroo.
Apple said it “strongly disagreed” with the tribunal’s findings and confirmed plans to appeal. The company told the BBC that its App Store system “ensures a secure and trusted marketplace for users and developers alike.”
The case adds to a series of global antitrust challenges faced by the Cupertino-based firm, which has been under scrutiny in both the EU and the US over similar claims of anti-competitive behaviour linked to its App Store model.
The ruling opens the door for millions of iPhone and iPad users to join the compensation claim. Anyone in the UK who made paid purchases through the App Store since October 2015 can check their eligibility and app purchase history via their Apple ID account settings.
Legal experts say the judgment could have far-reaching implications for digital platform accountability in the UK, potentially paving the way for further consumer class actions against major tech firms.
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Apple loses £1.5bn UK court case over App Store fees in landmark competition ruling