Apple has lost a major legal battle in the United Kingdom over its App Store commission structure, after a UK court ruled that the company’s long-standing practice of charging developers up to 30% commission may breach competition laws. The case, brought by consumer rights advocate Dr. Rachael Kent on behalf of around 1,500 UK-based app developers, could cost Apple billions in potential compensation.

Court Rules Apple’s Commission Structure “Anti-Competitive”

The Competition Appeal Tribunal (CAT) found that Apple’s App Store policies restrict competition and unfairly force developers to use Apple’s in-app payment system. The tribunal said that Apple’s control over pricing and distribution limits consumer choice and innovation, violating UK competition principles.

Apple’s commission—ranging between 15% to 30%—has been under global scrutiny for years, with regulators in the EU, U.S., and South Korea also investigating similar practices.

Potential Billions in Damages for Developers

The collective lawsuit, valued at over £785 million ($950 million), seeks compensation for developers who claim Apple’s fees inflated app prices and reduced their profit margins. The court’s ruling allows the case to proceed to a full trial, marking one of the most significant antitrust actions Apple has faced outside the United States.

Legal experts said the ruling could open the door for further challenges against Apple’s App Store monopoly in other markets.

Apple Defends Its Business Model

In response, Apple stated it would appeal the decision, emphasizing that its App Store “remains a safe and trusted marketplace for users and developers alike.” The company argued that its commission structure helps fund developer tools, security measures, and platform maintenance.

Despite these defenses, the tribunal maintained that Apple’s dominant position in app distribution gives it an “unfair competitive advantage.”

Global Ripple Effects for App Store Regulation

The UK verdict follows similar global developments — including the EU’s Digital Markets Act (DMA) and U.S. antitrust lawsuits — pressuring Apple to open its ecosystem. Analysts say the ruling could accelerate regulatory changes forcing Apple to adopt more flexible payment systems and lower commissions globally.

Industry Reaction and Market Impact

Following the announcement, shares of Apple dropped slightly in after-hours trading as investors weighed the potential long-term financial implications. Tech industry groups hailed the decision as a “milestone victory” for developer fairness and digital market competition.