Apple Loses UK Class Action Over Excessive App Store Charges

Apple Inc. lost a class-action in the U.K. 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.

Lawyers for Rachael Kent, the lead claimant in the case filed in 2021, estimated Apple could be liable to pay over £1.5 billion ($2 billion) to compensate tens of millions of users.

The ruling is the second setback for Apple in the U.K. this week after the Competition and Markets Authority designated the firm under its tougher rules governing Big Tech — exposing the US firm’s mobile ecosystems market to deeper scrutiny from the regulator.

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.

Any Apple users who made purchases of digital content through the App Store “at any point since” Oct. 1, 2015 is “potentially entitled to compensation from Apple for its anti-competitive practices,” lawyers for Kent at Hausfeld & Co. said in a statement.