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Apple’s executives were not in London for a product launch. In January 2025, the company was defending the economics and closed structure of its App Store before the UK Competition Appeal Tribunal in Dr. Rachael Kent v Apple.
The trial ended on February 28, 2025. On October 23, 2025, the Tribunal found Apple dominant in separate markets for iOS app distribution and iOS in-app payments, held that Apple’s restrictions foreclosed competition, and found its pricing excessive and unfair. The case has financial significance for consumers and developers, but it does not mean that every UK iPhone user automatically receives a fixed payment or that Apple’s App Store has been universally opened to rival stores.
Why Apple executives went to London
The original January 13, 2025 headline referred to a major competition lawsuit, not an Apple event. Apple was preparing to defend its App Store business model in a UK opt-out collective action brought by Dr. Rachael Kent on behalf of consumers.
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The executives were relevant because the case concerned Apple’s central commercial choices: who may distribute apps to iPhone and iPad users, which payment system must process qualifying digital purchases, what the App Store provides in return, and whether Apple’s commissions are justified.
The trial ran from January 13 through February 28, 2025, before the Competition Appeal Tribunal.
What consumers alleged Apple did
The claim focused on two connected parts of Apple’s model:
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- In-app payments: For relevant digital purchases, Apple required developers to use Apple’s payment system and pay a commission.
The claimants argued that Apple used its position to exclude competing distribution and payment providers, charged excessive and unfair prices, and passed at least part of those costs through to consumers in the form of higher prices.
This was a consumer collective action, but the economics involved both the fees charged to developers and the share of those costs ultimately borne by users. It was not simply a claim that every developer had paid an identical 30% fee.
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The “30% commission” needs qualification
Apple’s App Store commission is often described as 30%, but that headline rate does not apply to every app or transaction. Apple has said that many developers qualify for a 15% rate, while free apps pay no commission because there is no qualifying sale on which to charge one.
The Tribunal also did not calculate damages by declaring that every App Store sale had been overcharged by 30%. Its judgment used separate benchmark rates:
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| Service | Benchmark used by the Tribunal |
|---|---|
| iOS app-distribution services | 17.5% |
| iOS in-app-payment services | 10% |
The relevant overcharge was calculated by comparing those benchmarks with the rates Apple actually charged during the relevant periods. The figures are part of the Tribunal’s damages methodology; they are not automatically new App Store prices for all UK developers.
Apple’s defense
Apple defended the model on both practical and economic grounds. Its arguments included that:
- most App Store apps are free and generate no commission;
- many paying developers qualify for the 15% rate;
- the App Store provides app review, security, privacy protections, payment processing, distribution and other infrastructure;
- Apple competes in a broader ecosystem that includes Android devices and other platforms;
- commissions charged by other digital marketplaces are comparable.
Security and privacy were especially important. Apple’s position was that controlling distribution and payments helped it maintain a consistent, safe and reliable experience for users.
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What the Tribunal decided
In its judgment of October 23, 2025, the Tribunal made narrower and more specific findings than the shorthand claim that “Apple’s 30% fee was illegal.” It found that:
- Apple was dominant in separate markets for iOS app-distribution services and iOS in-app-payment services.
- Apple had near-absolute market power in those markets.
- Apple’s restrictions foreclosed competition in app distribution and payments.
- Apple tied its payment services to access to the App Store.
- Apple charged excessive and unfair prices in the relevant services.
- Apple’s security, privacy, performance and efficiency justifications did not show that the restrictions were necessary and proportionate.
The Tribunal rejected Apple’s argument that competition should instead be assessed across a broader market for devices and platforms. The ruling therefore did not find that Apple monopolized the entire smartphone market. It concerned the more specific UK markets for iOS app distribution and iOS in-app payments.
The official judgment is available from the Competition Appeal Tribunal.
How much money is involved?
The claim was widely described in the original 2025 coverage as being worth approximately £1.5 billion and involving about 20 million UK consumers. The Tribunal’s later judgment referred to approximately 36 million class members. Those figures should not be treated as interchangeable: they come from different stages or descriptions of the proceedings, and the available materials do not establish a single definitive explanation for the difference.
The Tribunal found an entitlement to damages for the part of the overcharge passed on to consumers. Its methodology used a 50% pass-on rate and awarded simple interest at 8%.
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That does not mean every class member is owed the same amount, or that £1.5 billion is a guaranteed payout. The final amount for an individual depends on factors such as qualifying purchases, the relevant period, the calculated overcharge and the portion treated as passed on.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the ruling means for iPhone users and developers
For consumers
The decision establishes liability and a damages framework, but it does not by itself answer the practical questions consumers usually care about:
- who qualifies for compensation;
- how each person’s share will be calculated;
- whether consumers must register or submit a claim;
- when payments will be made; and
- whether any distribution process has been approved.
The Tribunal’s case page shows continuing procedural activity, so readers should rely on later official orders rather than assume that a judgment automatically triggers an immediate payment.
For developers
The ruling is important because it concerns the cost structure developers face when reaching iPhone and iPad users. It also separates two services that are often bundled together in public debate: access to the App Store’s distribution channel and access to Apple’s in-app payment system.
However, the judgment should not be read as an announcement that Apple must immediately permit rival app stores or alternative payment systems throughout the UK. The sources establish the Tribunal’s liability findings and damages methodology, not a universal operational remedy or a new set of App Store rules for every developer.
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What happened after the judgment?
Apple’s application for permission to appeal was refused at a consequential-hearing stage on November 13, 2025. The Tribunal’s official case page later listed amendment-related proceedings, including an order dated July 27, 2026 and a pleading-amendment ruling dated July 15, 2026.
As of August 18, 2026, the case should therefore not be described as fully paid out or procedurally extinguished. A finding that consumers are entitled to damages is different from completion of claims administration and distribution.
How this case differs from other Apple disputes
The Kent case is separate from EU Digital Markets Act scrutiny, US litigation involving Epic Games and other App Store disputes. Those matters may concern similar questions about payments, distribution or platform power, but they are governed by different laws and produce different remedies.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsIt is also separate from the Which? v Apple collective action. That case concerns alleged anti-competitive conduct involving iCloud, not the App Store commission structure. The Competition Appeal Tribunal made a collective proceedings order in that case on June 17, 2026, listed a case-management conference for November 27, 2026 and provisionally set trial for the first available date in October 2028.
What this means for household budgets
For consumers, the most immediate lesson is that platform commissions can affect prices even when the charge is formally imposed on a developer. If a developer passes part of a platform fee into the price of a subscription or digital purchase, users may bear some of the economic cost.
But the UK judgment does not establish that every purchase was overpriced by 30%, nor does it specify a uniform refund for every iPhone or iPad owner. The financial outcome remains tied to the Tribunal’s detailed benchmarks, pass-on analysis and subsequent procedures.
Bottom line
Apple went to London to defend the App Store’s closed distribution and payment model. In the Kent case, the UK Competition Appeal Tribunal later found Apple dominant in the relevant iOS markets, held that its restrictions excluded competition, and ruled that its prices were excessive and unfair. The judgment is significant for App Store economics, but compensation amounts, eligibility, timing and any future changes to Apple’s UK policies remain matters for the continuing proceedings.
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