Major Legal Blow to Apple’s App Store Business Model
In a landmark ruling that parallels the ongoing Epic Games litigation, the UK’s Competition Appeal Tribunal has reportedly ordered Apple to pay approximately $2 billion in damages for anticompetitive App Store practices, according to court documents and statements from the claimant’s representatives.
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Details of the Collective Action Case
The case was originally filed in 2021 by Dr. Rachael Kent, a digital economy specialist and lecturer at King’s College London, who brought the complaint on behalf of approximately 36 million UK iOS and iPadOS users. While the UK doesn’t have class action lawsuits in the traditional American sense, sources indicate the legal system allows for collective actions where one claimant can represent a larger group., according to technology insights
The tribunal, which heard the case in January 2025, reportedly ruled unanimously that Apple’s 30% commission on App Store purchases was excessive and violated both UK and European Union competition laws. Analysis of the ruling suggests the court found Apple’s practices “eliminated all competition” on iPhone and iPad platforms.
Significance for Consumers and Tech Regulation
According to statements from Dr. Kent’s spokesperson, this ruling represents “a huge moment for UK consumers and a defining case for the collective action regime.” Reports suggest this marks the first successful collective action ruling against a major technology company in the UK legal system.
The tribunal reportedly determined that users who made App Store purchases over the past decade suffered collective losses of around $2 billion due to Apple’s commission structure. This case mirrors similar legal challenges Apple faces globally, including the high-profile litigation brought by Epic Games in the United States., according to market insights
Apple’s Position and Potential Next Steps
During the proceedings, Apple reportedly called the claims “meritless” and argued that its commission structure aligns with industry standards. According to Apple’s statements in the case, “the commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces,” noting that 84% of apps on the platform are free and generate no commission fees.
Legal analysts suggest the ruling from the Competition Appeal Tribunal indicates Apple previously appealed an earlier decision, though the exact procedural history remains unclear. It is reportedly uncertain whether Apple has further legal recourse following this tribunal ruling.
Broader Implications for Digital Markets
This decision comes amid increasing global scrutiny of major technology companies’ marketplace practices. According to competition law experts, the ruling could establish important precedents for how digital platforms operate in the UK and potentially influence regulatory approaches in other jurisdictions.
The case specifically targeted Apple’s control over iOS app distribution and payment processing, with the tribunal reportedly finding that Apple’s practices prevented meaningful competition. Industry observers suggest this ruling could accelerate ongoing efforts to force Apple to allow alternative app stores and payment systems in the UK market.
Further details about the ruling and its implementation are expected to be released shortly as legal teams and stakeholders analyze the full implications of the decision.
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References
- http://en.wikipedia.org/wiki/App_Store_(iOS/iPadOS)
- http://en.wikipedia.org/wiki/Class_action
- http://en.wikipedia.org/wiki/Apple_Inc.
- http://en.wikipedia.org/wiki/United_Kingdom
- http://en.wikipedia.org/wiki/Kent
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