Apple Loses UK Antitrust Lawsuit Over App Store Fees, Faces £1.5 Billion in Damages

Apple engaged in anticompetitive behavior by charging App Store developers "excessive and unfair prices" for app distribution services, the UK's Competition Appeal Tribunal (CAT) ruled today [PDF] (via Reuters).

app store blue banner uk
The Tribunal found that Apple abused its market power by overcharging developers from October 2015 through the end of 2020. Developers were forced into using Apple's in-app purchase system and had no alternative to paying up to a 30 percent commission during that time period. The excessive fees ultimately led to higher prices for consumers.

According to the CAT, Apple had a monopoly over iOS app distribution and in-app payments. Apple's argument that Android and other platforms were viable alternatives for consumers and developers was rejected. The Tribunal also did not accept Apple's argument that its rules and fees were required for user security and privacy.

The end of 2020 in the UK's timeline corresponds with the launch of the App Store Small Business Program that saw Apple reduce ‌App Store‌ fees for independent developers and small business owners. The program reduced the commission that Apple collected from developers earning under $1 million per year to 15 percent, down from 30 percent. It's also when Apple began implementing other ‌App Store‌ changes in response to cases like Epic Games v. Apple.

The class action lawsuit was first filed in 2021 by Kings College London academic Dr. Rachael Kent, and the claim seeks up to £1.5 billion in damages. The period between 2015 and 2020 was selected in order to determine how much Apple will need to pay to UK consumers.

A damages trial is scheduled for November. Apple said it will appeal the ruling.

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Top Rated Comments

germanbeer007 Avatar
2 weeks ago
Cool, so Sony, Microsoft, and Nintendo should be next, right? Or is it Apple because you made some arbitrary distinction that the App Store is nothing like the others...?
Score: 36 Votes (Like | Disagree)
diddl14 Avatar
2 weeks ago
This is just so sickening.

I put my first app on the App Store more than 10 years ago. Without Apple, I would never have been able to achieve such enormous market reach. The whole sales process, taxation, and even refunds became a no-brainer. The 30% commission was never an issue.

Would I have made my app cheaper if the commission had been only 5 or 10%? Or used another store provider with a lower commission? I don't think so.

All of this is just a non-issue and it’s outrageous that legislators believe they have to cash in on Apple "on behalf of developers and consumers."
Score: 27 Votes (Like | Disagree)
turbineseaplane Avatar
2 weeks ago
Time to pull out of the UK.

And the EU, Brazil, Australia, Japan, China…


Might be easier to just close down Apple actually.

Anything other than “giving an inch” to the cabal of jurisdictions asking for “more fairness”.
Score: 25 Votes (Like | Disagree)
justanotherdave Avatar
2 weeks ago
I’d like Apple to simply drop fees for Apps down to a level of 5/10%. That would completely shut these 3rd party store advocates.

But then Apple would have a new problem. They’d be accused of monopolistic behavior by undercutting 3rd party store fees and agin get sued.

Basically Apple loses either way and someone pockets money (but not the actual consumers).
Score: 22 Votes (Like | Disagree)
turbineseaplane Avatar
2 weeks ago
I’m sure Apple will complain to the Trump administration.

It was reported today, by the White House, that Apple is helping pay for the White House ballroom addition.

Absolutely disgusting to see
Score: 19 Votes (Like | Disagree)
code-m Avatar
2 weeks ago

It only makes you wonder if you don’t understand the difference between a game console and a general purpose device.
People have some weird justification when it comes to Apple, if you swap the name with another tech company the tone will be different.
Score: 16 Votes (Like | Disagree)