UK Tribunal Orders Apple £1.5bn Damages Over App Store Fees

The UK Competition Appeal Tribunal (CAT) ruled that Apple abused its dominant position by charging excessive and unfair commission fees on app developers, which led to overcharging UK consumers for app purchases, subscriptions, and in-app payments. This landmark collective action lawsuit, filed by Dr. Rachael Kent on behalf of approximately 36 million UK iPhone and iPad users, resulted in Apple being ordered to pay up to £1.5 billion in damages. The tribunal criticized Apple's 30% commission fee and its restrictions preventing alternative payment methods, stating these policies harmed competition and consumer interests. Apple has announced plans to appeal the ruling, with a forthcoming hearing to determine individual compensation amounts, which could average around £75 per claimant. This case adds to global scrutiny of Apple’s App Store policies, following similar regulatory challenges and legal battles in the US and Europe over its app distribution and payment processing practices. Legal firms estimate significant compensation for regular users, especially those with subscriptions or frequent in-app purchases.