Apple faces £1.5B payout after losing UK App Store case
(2025/10/24)
- Reference: 1761316240
- News link: https://www.theregister.co.uk/2025/10/24/uk_class_action_apple/
- Source link:
Apple could face claims estimated at around £1.5 billion after it lost a collective case in the UK arguing that its closed systems for apps resulted in overcharging businesses and consumers.
The ruling from a Competition Appeal Tribunal responded to the case brought on behalf of 36 million UK iPhone and iPad users, both consumers and enterprise customers.
Apple said it disagreed with [1]the ruling [PDF] and planned to appeal.
[2]
The court found Apple had imposed charges for its iOS app distribution services and its in-app payment service charged developers a headline commission rate of 30 percent.
[3]
In a unanimous judgment, the court found Apple overcharged developers as a result of its behavior in the iOS app distribution services market and the iOS in-app payment services market. There was also an overcharge resulting from the extent to which developers passed on the costs to iPhone and iPad users.
The court found those represented in the case, led by academic Dr Rachael Kent, could be eligible for 8 percent interest on damages awarded.
[4]
Speaking to the BBC, Kent said the decision was a "landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant."
In a statement, Apple said the ruling's view of its software marketplace was mistaken. It argued the App Store was good for UK businesses and consumers because it offered a space for developers to sell their work and somewhere users could choose from millions of software products.
"This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments. The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections," the tech giant said. ®
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[1] https://www.catribunal.org.uk/sites/cat/files/2025-10/14037721%20Dr.%20Rachael%20Kent%20v%20Apple%20Inc.%20and%20Apple%20Distribution%20International%20Ltd%20-%20%20Judgment%20%5B2025%5D%20CAT%2067%2023%20Oct%202025_0.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aPuilFcnEyASahARUBGnIwAAAQE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPuilFcnEyASahARUBGnIwAAAQE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPuilFcnEyASahARUBGnIwAAAQE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://whitepapers.theregister.com/
The ruling from a Competition Appeal Tribunal responded to the case brought on behalf of 36 million UK iPhone and iPad users, both consumers and enterprise customers.
Apple said it disagreed with [1]the ruling [PDF] and planned to appeal.
[2]
The court found Apple had imposed charges for its iOS app distribution services and its in-app payment service charged developers a headline commission rate of 30 percent.
[3]
In a unanimous judgment, the court found Apple overcharged developers as a result of its behavior in the iOS app distribution services market and the iOS in-app payment services market. There was also an overcharge resulting from the extent to which developers passed on the costs to iPhone and iPad users.
The court found those represented in the case, led by academic Dr Rachael Kent, could be eligible for 8 percent interest on damages awarded.
[4]
Speaking to the BBC, Kent said the decision was a "landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant."
In a statement, Apple said the ruling's view of its software marketplace was mistaken. It argued the App Store was good for UK businesses and consumers because it offered a space for developers to sell their work and somewhere users could choose from millions of software products.
"This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments. The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections," the tech giant said. ®
Get our [5]Tech Resources
[1] https://www.catribunal.org.uk/sites/cat/files/2025-10/14037721%20Dr.%20Rachael%20Kent%20v%20Apple%20Inc.%20and%20Apple%20Distribution%20International%20Ltd%20-%20%20Judgment%20%5B2025%5D%20CAT%2067%2023%20Oct%202025_0.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aPuilFcnEyASahARUBGnIwAAAQE&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPuilFcnEyASahARUBGnIwAAAQE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/applications&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aPuilFcnEyASahARUBGnIwAAAQE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://whitepapers.theregister.com/
Re: Waste of time appealing
Fred Dibnah
IANAL, but I would imagine that lodging an appeal means that Apple can ignore the ruling until the appeal is heard.
Given that the ruling came from a Competition Appeal Tribunal, I hope they also get to hear the appeal and throw Apple out of court.
So how are the Apple customers going to get the money ?
Anonymous Coward
I bet they don't see a penny.
Where's all that VAT I paid on Jaffa cakes ?
Spare change
elsergiovolador
Did Competition Appeal Tribunal just say oi mate, nice shiny app store you have there, would you spare me some change? I have ill businesses and consumers, they need some help, please mate.
Waste of time appealing
All the judgement is,. is a statement of fact that's been a long time coming. Enjoy wasting your time/money on an appeal Apple