Apple Loses Landmark UK Lawsuit — Faces £1.5 Billion Damages Over App Store Fees

UK court rules Apple overcharged millions of iPhone users via App Store. Apple faces £1.5bn damages in a historic consumer rights victory.

Raja Awais Ali

10/23/20252 min read

Apple Loses Landmark UK Lawsuit — Faces £1.5 Billion Fine Over App Store Overcharging

London, October 23, 2025 — Tech giant Apple Inc. has suffered a major legal defeat in the United Kingdom as the Competition Appeal Tribunal (CAT) ruled that the company overcharged millions of iPhone users through its App Store commission system. The decision marks a historic victory for consumer rights and could cost Apple up to £1.5 billion ($2 billion) in penalties.

The class-action lawsuit represented approximately 20 million iPhone users in the UK, who accused Apple of abusing its market dominance by charging developers and consumers an excessive 30% commission on all app purchases and subscriptions. According to the tribunal’s findings, a fair commission rate should have been around 17.5%, meaning Apple’s pricing model directly caused unnecessary financial harm to consumers.

The court concluded that Apple’s App Store practices violated competition and consumer protection laws, as they imposed unfair conditions on app developers and inflated prices for users.

Consumer rights representatives argued that Apple’s monopolistic control over the App Store restricted fair competition and forced higher costs on users. The tribunal’s ruling supports this claim, affirming that Apple’s policies were anti-competitive and exploitative.

Following the decision, Apple released a statement expressing disappointment and confirmed it plans to appeal the ruling. The company maintained that its App Store “provides a safe, fair, and privacy-focused platform that benefits both users and developers.”

However, consumer advocates hailed the ruling as a major win for fairness and accountability in the digital economy. They stated that this decision sends a strong message that even the world’s largest corporations are not above the law.

Experts believe that if Apple’s appeal fails, the company could face billions in losses and might be forced to restructure its global business model. The verdict could also influence other major tech companies such as Google, Amazon, and Microsoft, which have faced similar allegations of monopolistic behavior.

This landmark ruling represents a turning point in the fight for consumer rights and fair competition in the digital market. It reinforces the principle that every company, regardless of size or influence, must operate transparently and ethically.