Apple Faces Billions in Damages After UK Court Smashes App Store Practices

Apple might just lose billions after its latest defeat in court. Apple Inc. found itself in the docks in London, the verdict landed hard. On 23 October 2025, the Competition Appeal Tribunal (CAT) concluded that Apple had allegedly abused its dominant position in the UK market by charging unfair and excessive fees to app developers via its App Store.

The shocking decision opens the door to potential damages of up to £1.5 billion (roughly $2 billion) on behalf of tens of millions of UK iPhone and iPad users. This is a nightmare for Apple, renowned for its tight ecosystem control and premium brand image, and this ruling could mark a serious dent in its image for many and one that may reshuffle how the App Store and similar digital marketplaces operate.

The Case Against Apple

The CAT's verdict zeroed in on the period from October 2015 through to the end of 2020 as per reports, during which Apple held what the tribunal called 'near absolute market power' in the UK for iOS app distribution and in app payments reportedly. The main finding was that Apple had prevented alternative app stores or payment systems from operating on iPhones and iPads, and thereby forced developers to pay Apple's commissions which could often be up to 30 percent on paid downloads or in app purchases.

Furthermore, the CAT stated that Apple was 'abusing its dominant position by charging excessive and unfair prices in the form of the commission which it charges developers.' The tribunal also reportedly calculated that a 'fair' commission would have been around 17.5 per cent, and that developers passed on roughly half of the overcharge to consumers. Therefore the scale here is massive as some sources suggest that around 19 million UK users may be eligible for compensation by Apple.

How Apple Responded

Apple's reaction was quick and predictable as the company said it strongly disagrees with the ruling, reportedly releasing the statement:

'We thank the tribunal for its consideration but strongly disagree with this ruling, which takes a flawed view of the thriving and competitive app economy. The App Store has benefited businesses and consumers across the UK, creating a dynamic marketplace where developers compete and users can choose from millions of innovative apps. 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 — giving developers and consumers many options in how they build, share, and download apps. We intend to appeal.'

Moreover, Apple has already revealed its intention to appeal the decision, which means the legal drama is far from over. Meanwhile, a hearing is set to determine how damages will be calculated and how they will be distributed to eligible users. Therefore, the case also acts as a signal to other Big Tech companies that dominant platform behaviour can be challenged not only by regulators, but by collective action claimants and legal frameworks.