Apple has asked the UK Court of Appeal to overturn a £1.5 billion ($1.76 billion) antitrust ruling that found the company overcharged millions of App Store users, escalating one of the largest competition cases ever brought against the company in the country (via the guardian).
The request follows an October decision by the UK Competition Appeal Tribunal (CAT), which found that Apple abused its dominant position by charging excessive commissions on App Store purchases between 2015 and 2024. The court concluded that Apple’s control over the distribution of apps on iPhones and iPads allowed it to impose commission rates of up to 30% that were higher than those that would have prevailed in a competitive market, resulting in in consumer damage estimated at £1.5 billion.
The case was brought as a class action on behalf of approximately 36 million British consumers. Under the UK’s class action law, eligible consumers are automatically included unless they opt out, meaning anyone in the UK who made purchases from the App Store during the relevant period could be entitled to compensation if the ruling is upheld.
In its view, CAT said Apple should have charged lower commissions, estimating that rates of around 17.5% on app sales and 10% on in-app purchases would have been more appropriate. The court acknowledged that this assessment was based on “educated guesses” based on the evidence presented.
Apple strongly questions that approach. After the October ruling, the company asked the CAT for permission to appeal, but the court refused in November, concluding that Apple had not met the legal threshold to challenge its decision. Apple has now applied directly to the Court of Appeal, which has the authority to grant permission even when CAT has rejected it.
Apple said it disagrees with the ruling and argues that the court took the wrong view of the app economy. In an earlier statement responding to the decision, the company said the App Store operates in a “thriving and competitive app economy” and provides developers and consumers with security, privacy protection and access to a large market. Apple also noted that most developers now pay a reduced 15% commission and that the App Store facilitated more than $55 billion in sales in the UK last year.
If Apple’s appeal is rejected and the ruling is upheld, the £1.5 billion compensation will be distributed among eligible UK consumers, with individual payments likely to be relatively small but collectively significant.
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