U.K. Tribunal Rules Apple App Store Fees as "Excessive and Unfair"

• U.K. Tribunal finds Apple charged excessive App Store fees between 2015 and 2020, abusing market dominance.
• Academic-led lawsuit could result in £1.5 billion damages in first successful U.K. mass tech action.
  
• Ruling may force commission reductions and reshape global app distribution, benefiting developers and consumers.

A U.K. tribunal ruled that Apple charged excessive and unfair fees to app developers for years, a decision that could force the U.S. tech-giant to pay as much as £1.5 billion ($1.84 billion) in damages.

The Competition Appeal Tribunal (C.A.T.) found that Apple had abused its dominant position in the U.K. between October 2015 and late 2020 by excluding competition in app distribution and in-app payments, while extracting what the court deemed "excessive and unfair" commissions from developers.

The case, brought by British academic Rachael Kent, represents the first mass-action lawsuit against a major technology company in the U.K., under the collective action regime. A hearing scheduled for next month will determine the final damages amount and consider Apple's request for permission to appeal.

What the Ruling Means for App Developers and Consumers

The tribunal concluded that a reasonable fee charged by Apple would have been around 17.5% while Apple typically charged approximately 30%—a premium that was partially passed on to consumers, according to the court's findings. The judges determined that developers absorbed roughly half the excess cost, with the remainder borne by users.

In a statement to BBC, Apple said that the judgement may not have considered how the App Store helped “developers succeed” and gave “consumers a safe” and a “trusted place to discover apps and securely make payments." 

The decision comes as Apple’s services division, which includes the App Store, has become an increasingly important revenue driver. In the third quarter of 2025, services revenue climbed 13% year over year to $27.4 billion USD, representing 29% of the company’s total revenue during the period. Sensor Tower forecasted that the App Store will generate $185 billion USD globally in 2025.

The ruling could weaken Apple’s control over its iOS ecosystem and strengthen calls for alternative payment methods and app-distribution models.