Apple Loses UK Class Action Over ‘Excessive’ App Store Charge

Apple Inc. lost a class-action in the UK after a court ruled that it abused its dominant position to charge excessive commission from app developers. 

The Competition Appeal Tribunal ruled on Thursday that Apple failed to justify its conduct and must pay damages for the overcharged amounts. 

The lawsuit alleged that millions of “captive” iPhone and iPad users paid the price for “exorbitant” commission charged by Apple for purchases made on its App Store. Apple denied the allegations.

“Apple has abused its dominant position by charging excessive and unfair prices,” the tribunal said in a summary of the ruling.

Rachael Kent the lead claimant in the case filed in 2021, and her lawyers estimates Apple could be liable to pay over £1.5 billion ($2 billion) to compensate some 20 million users in the UK who paid for apps or subscriptions on their devices since October 2015. 

Apple said the ruling took a flawed view of the thriving and competitive app economy. “This ruling overlooks how the App Store helps developers succeed,” an Apple spokesperson said.