Apple loses $2b UK lawsuit over App Store fees

Apple has lost a major lawsuit in the UK after a London tribunal found it abused its dominant position by charging unfair commissions to app developers.

The Competition Appeal Tribunal (CAT) ruled that Apple overcharged developers on its App Store from October 2015 to the end of 2020, potentially making the company liable for hundreds of millions of pounds in damages.

The lawsuit, brought on behalf of millions of iPhone and iPad users, is valued at around £1.5 billion (US$2 billion).

The CAT said developers were overcharged by the difference between a 17.5% commission and the higher rate Apple typically charged, with half of this cost passed on to consumers.

Apple said it will appeal the decision, arguing the app economy remains competitive.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

The 17.5% benchmark and 50% pass-through rate will guide damages calculations for the liability period

CAT, the UK’s specialist competition court, found an overcharge equal to the gap between Apple’s 30% commission and a 17.5% benchmark, with 50% passed to consumers 1. The period runs from October 2015 to December 2020. (Pass-through means the share of a cost increase that ends up in consumer prices.)
A November hearing will set the damages method and handle Apple’s request to appeal 1. Pricing remains unclear for app makers and payment firms until the appeal ends, with remedies final. Any extension of the period depends on those outcomes.

Payments firms and developer tool companies should plan around the CMA conduct requirements timeline

On 22 October 2025, the UK Competition and Markets Authority (CMA) gave Apple Strategic Market Status (SMS) and will consult on conduct rules from autumn 2025 2, with updated roadmaps in the first half of 2026 3. If rules require alternative payments or sideloading (installing apps from outside the official store), similar to the EU’s Digital Markets Act (DMA), third-party billing and distribution firms will have a short window before Apple’s options roll out.
Fintech (financial technology) firms and payments companies in the UK, which drew more than £18 billion in inward investment over the past three years, should prepare now as the CMA is likely to favor interoperability with strong consumer choice 3. Google’s SMS probe ended with the same designation on 22 October 2025, so teams building for one store should plan for both 4.