Apple Faces £1.5 Billion Setback After Losing UK App Store Lawsuit

Apple has suffered a major legal defeat in the United Kingdom after the Competition Appeal Tribunal (CAT) ruled that the company abused its dominant market position through the App Store’s commission structure. The lawsuit, representing around 20 million iPhone and iPad users, is valued at up to £1.5 billion ($2.01 billion).

The case centered on Apple’s long-standing practice of charging app developers a 30% commission on in-app purchases and paid downloads. Critics argued that this policy inflates prices and restricts competition, ultimately harming consumers.

In its defense, Apple maintained that the App Store provides a secure and trusted environment for users while offering developers a valuable platform to reach global audiences. “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” an Apple spokesperson said following the verdict.

The tribunal, however, found that Apple’s policies were anti-competitive and placed an unfair burden on developers and users alike. Legal experts suggest the ruling could set a significant precedent for how app marketplaces operate in the UK and potentially across Europe.

This decision adds to the growing regulatory pressure Apple faces worldwide over its control of digital ecosystems. Similar antitrust actions are underway in the European Union, the United States, and other major markets, as regulators continue to scrutinize the power of big tech companies.

Apple is expected to appeal the decision, but for now, the CAT’s ruling represents a landmark moment in the ongoing debate over fairness and competition in the digital economy.