Apple Loses Landmark U.K. Lawsuit Over App Store Commissions

Monday, 27 October 2025

Sam Tobin, reporting last week for Reuters:

Apple abused its dominant position by charging app developers unfair commissions, a London tribunal ruled on Thursday, in a blow which could leave the U.S. tech company on the hook for hundreds of millions of pounds in damages. The Competition Appeal Tribunal (CAT) ruled against Apple after a trial of the lawsuit, which was brought on behalf of millions of iPhone and iPad users in the United Kingdom.

The CAT ruled that Apple had abused its dominant position from October 2015 until the end of 2020 by shutting out competition in the app distribution market and by “charging excessive and unfair prices” as commission to developers. [...] The case had been valued at around 1.5 billion pounds ($2 billion) by those who brought it. A hearing next month will decide how damages are calculated and Apple’s application for permission to appeal.

Dan Moren and I discussed this at some length in the new episode of The Talk Show that dropped over the weekend. What makes this ruling interesting isn’t that it’s particularly significant or different from other regulatory/antitrust investigations around the world. It’s the fact that it’s completely in line with other regulatory/antitrust investigations regarding the App Store (and Play Store) from around the world.

When is the last time an investigation regarding the legality of the App Store’s dominant market position went in Apple’s favor, in any country? I can’t recall one. Apple is clearly fighting a losing battle here. Whether Apple ought to be losing all these legal and regulatory battles regarding the App Store is, from a strategic standpoint, almost irrelevant. The obvious fact is, they are losing them.

Apple has approached all this regulatory conflict from a perspective that they’re right, and the regulators are wrong. That the App Store, as Apple wants it, is (a) good for users, (b) fair to developers, and (c) competitive, not anti-competitive, legally. But even if Apple is correct about that, at some point, after being handed loss after loss in rulings from courts and regulatory bodies around the globe, shouldn’t they change their strategy and start trying to offer their own concessions, rather than wait for bureaucrat-designed concessions to be forced upon them?

However Apple thinks all of this should work out is not the way it is working out. The best time to adjust the rules of the App Store — its exclusivity on app distribution for the entire iOS platform, the exclusivity of Apple’s IAP for purchasing digital content, the commission percentage splits on IAP — was over a decade ago. The next best time to make those adjustments is now.