The court ruled that Apple abused its dominant position by cutting off competition and charging exorbitant prices.
Published October 23, 2025
Apple is abusing its dominant position by charging unfair fees to app developers, a London court has handed down in a blow that could cost the US technology company hundreds of millions of pounds in damages.
On Thursday, the UK’s Competition Appeal Tribunal (CAT) ruled against Apple after hearing a lawsuit brought on behalf of millions of iPhone and iPad users in the UK.
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The CAT ruled that Apple abused its dominant position from October 2015 to the end of 2020 by blocking competition in the app distribution market and “charging excessive and unreasonable prices” in fees to developers.
Apple, which is facing growing pressure from U.S. and European regulators over the fees it charges developers, said it would appeal the ruling, saying it “casts a false picture of a thriving and competitive app economy.”
The suit was valued by the bringers at about 1.5 billion pounds ($2 billion). A hearing next month will decide how damages will be calculated and Apple’s application for leave to appeal.
Thursday’s ruling came after Apple received a complaint from Europe’s antitrust regulator over its App Store terms of service, which are based on rules aimed at reining in Big Tech.
“Exorbitant profits”
Rachel Kent, a British academic who brought the lawsuit, argued that Apple made “exorbitant profits” by eliminating all competition in app distribution and in-app purchases.
Her lawyers argued at the start of the trial in January that Apple’s “100% monopoly position” allows it to impose restrictive terms and excessive fees on app developers, a claim Apple denies.
In its ruling, CAT said the developer was overcharged due to the difference between the 17.5% fee for app purchases and the fee charged by Apple, which Kent’s lawyers typically say is 30%. The CAT also ruled that the app developer passed on 50 percent of the overcharge to the consumer.
“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe and trusted place to discover apps and securely pay for them,” an Apple spokesperson said in a statement.
groundbreaking class action lawsuit
The case is the first major lawsuit against a tech giant to be tried under Britain’s nascent class action system, which celebrates its 10th anniversary this year and has seen several multibillion-pound cases certified, but has so far had limited success for consumers.
But there are a number of other lawsuits underway, including one against Google over the fees it charges app developers for access to the Play Store.
The lawsuit is scheduled to begin in October 2026 and will be heard alongside similar claims by Epic Games, which is pursuing a parallel lawsuit with Apple in the United States.
Tech giants such as Amazon and Microsoft also face large claims under CAT.
Kent said in a statement that the ruling shows the UK’s collective action regime is working and “sends a clear message that no company, no matter how rich or powerful, is above the law”.
