UK consumers win historic £1.5 billion case against Apple

Court rules Apple unlawfully exploited UK consumers with excessive App Store charges – 36 million people set for compensation

Dr Rachael Kent, working with Hausfeld law firm, has won her groundbreaking class action against Apple, after the Competition Appeal Tribunal ruled that the tech giant abused its dominant position and systematically overcharged UK consumers for nearly a decade.

Up to 36 million people could now receive compensation worth more than £1.5 billion in what represents a watershed moment for consumer rights in the digital age.

Dr Kent, a consumer rights champion and academic at King’s College London who brought the case, said:

“This is a landmark victory — not only for App Store users, but for anyone who has ever felt powerless against a global tech giant. The Tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years – and that up to £1.5 billion should now be returned to UK consumers and businesses.” 

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Kent added: “Every in-app purchase, subscription, and paid download was inflated by Apple’s anti-competitive practices. Those unfair fees have added up to billions for the world’s richest company, and less choice and innovation for everyone else.”

A decisive victory on all counts

After a 28-day trial, the tribunal delivered a comprehensive judgment against Apple, finding in favour of consumers on every key point.

The court ruled that Apple holds a monopoly with “near absolute market power” in two critical markets: distributing apps on iPhones and iPads, and processing payments for apps and in-app purchases.

Apple was found to have broken competition law by forcing app developers to use only its App Store and payment systems, shutting out any potential rivals and leaving consumers with no choice but to pay inflated prices.

Most significantly, the tribunal ruled that Apple’s commission rates of up to 30% were both excessive and unfair – exactly what Dr Rachael Kent had argued when she brought this groundbreaking case.

The court determined that a fair commission would have been 17.5% for app distribution and just 10% for payment processing. Apple had been charging up to 30% on both.

Apple’s defences rejected

Apple attempted to justify its restrictions by claiming they were necessary for user safety, security and privacy. The tribunal firmly rejected these arguments, finding the restrictions were neither necessary nor proportionate to achieve these goals.

The court also dismissed Apple’s claims that it faced sufficient competitive pressure from other factors, concluding that Apple had effectively eliminated competition in the relevant markets.

Apple has said it will appeal the decision, stating:

“We strongly disagree with this ruling, which takes a flawed view of the thriving and competitive app economy. The App Store has benefited businesses and consumers across the UK, providing a safe and trusted place to discover apps and make secure payments. We intend to appeal.”

What this means for your pocket

The tribunal found that app developers passed on approximately 50% of Apple’s overcharges to consumers through higher prices for apps, subscriptions and in-app purchases.

This means that every time you bought an app, paid for a subscription like Spotify or Netflix through the App Store, or made an in-app purchase – whether for extra lives in a game or premium features – you were likely paying more than you should have been.

The court has awarded damages plus interest at 8% per year, which will significantly increase the total compensation amount given the years covered by the claim.

Who gets compensation?

You could be entitled to compensation if you made purchases in the UK App Store on an iPhone or iPad at any point sine 1 October 2015.

This includes:

• Paid apps
• App subscriptions (like streaming services, news apps, fitness apps)
• In-app purchases for digital content or services
• In-app purchases in games

Both individual consumers and businesses based in the UK during this period are covered.

The exact amount each person receives will depend on how much they spent in the App Store during this time. With more than 36 million potential claimants sharing £1.5 billion plus interest, individual payouts could be substantial for regular App Store users.

A turning point for tech accountability

This ruling sends a powerful message to big tech companies: even the world’s most valuable corporations cannot exploit consumers without being held accountable.

Lesley Hannah, a partner at law firm Hausfeld who represented Dr Kent, said: “We’re delighted to have helped Rachael secure this victory against Apple on behalf of millions of UK App Store users who’ve been paying inflated prices for years. The purpose of competition law is to ensure fairness and stop companies from abusing their market power, yet Apple unlawfully excluded rivals to prevent consumers from accessing cheaper alternatives.

“This case shows exactly why the collective action regime matters. No individual could have taken on a company as powerful as Apple alone. We need this system, and representatives like Dr Kent, to protect UK consumers and businesses from illegal, anti-competitive conduct.”

Apple reported around $390 billion in revenue globally in 2024, with significant profits flowing from its App Store. The tribunal’s ruling exposes how much of this success came at the expense of UK consumers who had no alternative but to accept Apple’s terms.

Dr Kent added: “This case proves that the UK’s collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account. Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.”

The evidence was overwhelming

The tribunal heard evidence from Apple’s own vice president and chief financial officer, Kevan Parekh, as well as testimony from the Competition and Markets Authority.

The court compared Apple’s charges to other digital platforms including Steam, the Microsoft Store and the Epic Games Store, finding Apple’s prices excessive even when measured against these competitors.

The judgment makes clear that Apple maintained its high charges not through superior service or innovation, but through its ability to lock consumers into a system with no alternatives.

Regulatory momentum builds

This victory comes at a pivotal moment for digital markets regulation. Apple has already been forced to make changes in the European Union, where customers can now download apps from alternative stores following action by the European Commission.

The UK’s new Digital Markets, Competition and Consumers Act, which came into force in January 2025, gives the Competition and Markets Authority powerful new tools to tackle similar conduct going forward.

But while regulatory action can change future behaviour, it’s legal cases like Dr Kent’s that deliver justice and compensation for consumers who have already been harmed.

When and how you’ll get compensated

The tribunal’s ruling establishes Apple’s liability and sets out the framework for calculating damages. The next stage will involve determining exact compensation amounts (likely to be between £27 to £75) and establishing the process for distributing payments to eligible consumers.

Given the scale of this case and the number of people affected, the compensation process will likely take some months to fully implement. However, the hard-fought legal battle has been won.

If you made App Store purchases at any point since 1 October 2015, you should: