Apple loses first-of-its-kind UK class action over App Store fees

Apple loses first-of-its-kind UK class action over App Store fees

Apple has lost a first-of-its-kind class action lawsuit in the UK in a case concerning the “excessive and unfair” charges imposed on app developers.

The Competition Appeal Tribunal (CAT) yesterday handed down judgment in Dr Rachael Kent v Apple Inc. and Apple Distribution International Ltd [2025] CAT 67.

The claim, brought by Dr Rachael Kent on behalf of around 36 million class members, is the first collective action brought under the UK’s Consumer Rights Act 2015 to succeed at trial.

The claim concerned purchases by users of Apple devices of iOS apps and in-app content (including subscriptions).

The CAT concluded that Apple had abused its dominant position by foreclosing competition in the iOS app distribution services market and the iOS in-app payment services market.

It did so by tying its payment services for iOS in-app payments to the App Store, and by charging excessive and unfair prices in the form of the commission that it charges developers for iOS app distribution services and iOS in-app payment services.

Apple charges a headline rate of commission of 30 per cent to iOS app developers.

The CAT found that developers had suffered an overcharge in the iOS app distribution services market of the difference between a commission set at 17.5 per cent and the commission actually charged.

They also suffered an overcharge in the iOS in-app payment services market of the difference between a commission set at 10 per cent and the commission actually charged.

The rate of incidence at which developers passed on the overcharge to iOS device users was assessed at 50 per cent.

The CAT therefore found that Dr Kent is entitled to damages in respect of the claims of class members, assessed on an aggregate basis.

It also found that Dr Kent is entitled to interest on those damages at a simple rate of eight per cent.

Law firm Hausfeld & Co. LLP, representing Dr Kent, believes that the damages could total around £1.5 billion.

Apple has said it intends to appeal.

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