Apple recently faced a significant legal setback in London, where it lost a landmark lawsuit accusing the tech giant of anti-competitive practices related to its App Store commissions. On October 23, under Britain's newly implemented class action style litigation framework, the Competition Appeal Tribunal (CAT) ruled against Apple, finding that the company had abused its dominant market position by imposing an unfair 30 percent commission on app developers.

The case was initiated in early 2025 by British academic Rachael Kent, who represented approximately 20 million iPhone and iPad users across the United Kingdom. The lawsuit sought damages amounting to an estimated 1.5 billion pounds (approximately $2.01 billion), alleging that Apple's practices resulted in "exorbitant profits" by stifling competition for the distribution of apps and in-app purchases. This particular hearing holds notable significance as it marks the first major case to proceed under Britain's new mass lawsuit regime, potentially setting a crucial precedent for future litigations.

In its detailed judgment, the CAT explicitly stated that Apple's actions constituted an abuse of its dominant position. The tribunal concluded that Apple had effectively shut out competition in the app distribution market and had levied "excessive and unfair prices in the form of the commission which it charges developers." Consequently, the court deemed the claimants were entitled to receive damages, although the precise amount of these damages is yet to be determined and will be the subject of a subsequent hearing scheduled for November.

In response to the adverse ruling, Apple voiced its disagreement and announced its intention to appeal. An Apple spokesperson, speaking to Reuters, asserted that the ruling "overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments." The company further stated its belief that the court's decision takes a "flawed view of the thriving and competitive app economy," underscoring its commitment to defending its App Store model.

This UK ruling adds to a growing wave of regulatory scrutiny and legal challenges that Apple is currently navigating globally. The US tech giant is already under increasing pressure from anti-trust regulators in both its home country and Europe, facing numerous allegations concerning the fees it charges developers. Moreover, other major technology companies, such as Google, are encountering similar anti-trust charges in various jurisdictions, including Europe and India, indicating a broader shift towards stricter oversight of digital platform economies.