Apple lost a landmark antitrust case in London that targets its App Store commissions. The tribunal said Apple abused dominance by blocking rivals and inflating fees. The ruling covers October 2015 through the end of 2020, and it opens the door to large consumer payouts. The decision also validates a U.K. class action filed on behalf of millions of users.
The Competition Appeal Tribunal said Apple shut out competition in app distribution and charged excessive and unfair prices to developers. Judges found Apple’s standard commissions far exceeded a fair benchmark, harming the app market and consumers. The judgment centers on how Apple set and enforced fees across the ecosystem.
Reuters reports that the case values damages around 1.5 billion pounds, or about $2 billion. The tribunal accepted a damages framework that compares Apple’s usual 30 percent cut with a 17.5 percent fair rate. The ruling also says developers passed about half of the overcharge to users. A separate hearing next month will set the damages method and consider Apple’s request to appeal.
What the tribunal found
Judges concluded Apple used App Store control to restrict rival distribution channels. That control let Apple impose commissions the court viewed as excessive for years. The ruling highlights how platform rules shaped prices across in-app purchases and subscriptions. The class covers roughly 20 million U.K. iPhone and iPad users.
Apple says it will appeal and defends the App Store as competitive. The company argues its fees fund security, privacy, and developer tools that benefit users. The upcoming hearing will determine how the court calculates losses and any consumer redress.
Damages could mix developer overcharges and consumer pass-through effects. The court’s method will matter as much as the headline number. A definitive figure will follow the November hearing, but Apple’s appeal could prolong the process. The judgment still marks a clear legal setback for Apple in the U.K.
