- Tribunal finds commission on app purchases was ‘excessive and unfair’
Apple could pay up to £1.5billion in compensation payments to users of its App Store following a landmark court ruling.
A Competition Appeal Tribunal found that Apple had overcharged for app sales and in-app payments, leveraging its ‘dominant position’ over Apple users.
There are some 36 million users of Apple products in the UK, meaning compensation could amount to £40 per user if everyone claimed.
As part of a collective action lawsuit brought by academic Dr Rachael Kent, the tribunal ruled unanimously that Apple’s 30 per cent commission rate placed on sales and in-app purchases was ‘excessive and unfair’ on users.
The suit relates to charges between 1 October 2015 and 15 November 2024, during which time the claimants say Apple should have charged developers ‘non-abusive’ fees for App Store distribution, which would have meant lower prices for Apple users.
The ruling will see Apple pay between £27 and £75 to each victim, though the value will depend on how much users spent. Unclaimed compensation will be paid to Hausfield, the law firm that co-ordinated the case.
A second hearing will be held in November to set out how damages will be calculated
In total, the claim could be worth as much as £1.5billion, according to the claimants. The CAT ruled that Apple should pay interest at eight per cent.
Kent, who is a senior lecturer in Digital Economy and Society Education at King’s College London, said the ruling was a ‘landmark victory, not only for App Store users, but for anyone who has ever felt powerless against a global tech giant.’
She said: ‘Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.’
A second hearing will be held in November to set out how damages will be calculated.
Apple said it will appeal the decision.
In a statement, the California-based firm said: ‘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 hearing, brough on behalf of Iphone and Ipad users in the UK, is the first US style class action suit to be taken against a major tech company to reach trial.
A similar suit is in progress against Google over the commission it charges ap developers to use its Play Store, which is set to be heard in 2026.
Earlier this week, the Competition and Markets Authority ruled that Apple and Google had ‘strategic market status’, meaning that they could face specific regulation on how they operate in the mobile market.
Will Hayter, the executive director for digital markets at the CMA, said: ‘Apple and Google’s mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms’ rules may be limiting innovation and competition.’
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