Apple loses UK antitrust lawsuit, tribunal rules firm charged “excessive and unfair prices”

Apple has lost a landmark UK antitrust case that ruled the company charged “excessive and unfair prices” for app distribution and in-app purchases.

How Reuters The Competition Appeal Tribunal (CAT) yesterday ruled that Apple abused its position as the dominant company in the app distribution market to overcharge consumers.

The claim was originally brought to court by academic Rachel Kent, who alleged that Apple made “exorbitant profits” through 30% commissions for consumers, developers and businesses.

Apple appealed this decision. The tech giant could face £1.5 billion in damages to be decided at a hearing next week, which will also take into account Apple's appeal.

In response, an Apple spokesperson said (via BBC News): “This ruling ignores how the App Store helps developers succeed and provides consumers with a safe and secure place to discover apps and make secure payments.

“The App Store faces intense competition from many other platforms, often with far less privacy and security protections.”

Speaking exclusively to GamesIndustry.bizXsolla President Chris Huish says the decision “will mark a major shift in mobile gaming.”

“The tribunal found Apple's 30% fee to be excessive, indicating potential relief for developers long held back by high fees,” Huish said.

“If this decision is upheld, it could reduce Apple's share to competitive levels, freeing up more revenue for studios and possibly lowering in-app prices.”

He adds: “It also strengthens calls for alternative payment systems and distribution methods, eroding Apple's control over the iOS ecosystem. Although Apple plans to appeal, the ruling increases global regulatory pressure and could accelerate more equitable revenue sharing by giving mobile game developers the opportunity to reinvest in content, marketing and innovation instead of platform fees.”