Apple Loses Landmark UK Lawsuit Over 30% App Store Commission: Court Rules Fee Unfair to Developers

London, UK: In a major setback for the tech giant, apple has lost a high-profile lawsuit in a London court over its controversial 30% App Store commission. The court ruled that Apple unfairly exploited its dominant market position, charging developers excessive fees for app distribution and in-app purchases.

The ruling, delivered by the Competition Appeal Tribunal (CAT), comes after a lengthy trial earlier this year involving claims on behalf of nearly 20 million iphone and iPad users in the UK. The class-action case, valued at up to £1.5 billion ($2.01 billion), could have far-reaching consequences for Apple’s UK business operations and its global App Store model.

Apple Found Guilty of Market Abuse

The tribunal concluded that Apple had indeed misused its dominant position by imposing “excessive and unfair prices” on developers through its 30% commission rate. According to the CAT, Apple also stifled competition by blocking alternative app distribution channels, effectively forcing developers to rely solely on its App Store ecosystem.

The decision marks one of the most significant antitrust judgments against Apple in the UK, raising questions about how Big Tech platforms use control over digital marketplaces to generate vast profits.

Claimant Argues Apple’s Profits Were “Exorbitant”

The lawsuit was spearheaded by Rachael Kent, a British academic and consumer rights advocate, who accused Apple of reaping “exorbitant profits” by shutting out competition in app distribution. Kent argued that consumers and developers were both forced to bear the cost of Apple’s rigid 30% commission model.

In response, the tribunal agreed that Apple’s pricing model was not justified by the costs of running the App Store, noting that the company’s market power enabled it to impose terms detrimental to both developers and users.

How Apple’s App Store Commission Works

Apple charges developers a commission fee on all app sales and in-app purchases made through its App Store. This model has faced criticism for limiting innovation and increasing costs for consumers.

Developers Entitled to Compensation

Following the ruling, members of the claimant class – comprising millions of UK consumers – are now entitled to receive compensation. The exact calculation of damages will be discussed in a separate hearing scheduled for next month.

This decision could inspire similar actions across Europe, where regulators have been closely watching Apple’s business practices and its handling of developer relationships.

Apple’s Response: “A Flawed View of a Competitive App Economy”

In an official statement, Apple criticized the tribunal’s verdict, calling it “a flawed view of the thriving and competitive app economy.” The company confirmed plans to appeal the ruling, arguing that the App Store offers both safety and opportunity for developers.

“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” said an Apple spokesperson. The company maintains that its policies ensure user security and provide developers access to a global market.

Impact on Big Tech and Future Legal Challenges

This is the first major class-action case against a digital platform to reach trial under the UK’s new collective action framework. The ruling may open the floodgates for additional lawsuits targeting digital monopolies under similar grounds.

Experts suggest that if the damages are upheld, Apple could face stricter regulatory scrutiny not just in the UK, but also across the European Union and the United States, where lawmakers are already considering measures to curb excessive app store fees.

With more cases in the pipeline, the verdict marks a turning point for developers worldwide who have long complained about unfair app store commissions and restrictive policies.