Apple has launched a legal appeal against a major UK court ruling that ordered the tech giant to pay up to £1.5 billion in compensation for overcharging millions of British customers through its App Store.
The Core of the 'Apple Tax' Allegations
The case centres on what campaigners have dubbed the 'Apple Tax' – the up to 30 per cent commission Apple charges on app sales and in-app purchases. The Competition Appeal Tribunal found that Apple abused its 'dominant position' to impose excessive fees on developers between 1 October 2015 and 15 November 2024. These costs, the tribunal ruled, were then passed on to consumers, resulting in years of overcharging.
With an estimated 36 million users of Apple products in the UK, the collective action could see compensation ranging from £27 to £75 per person, depending on individual spending. If every eligible user claimed, the average payout could be around £40.
A Tidal Shift Against Big Tech
Apple's decision to challenge the ruling sets the stage for a significant legal battle at the Court of Appeal. The original verdict was hailed by consumer rights advocates as the beginning of a 'tidal shift against big tech', challenging the financial models of major digital platforms.
This lawsuit is not an isolated case. It is one of several opt-out class action lawsuits targeting both Apple and Google, which together are seeking more than £6 billion in total compensation for UK consumers. The opt-out system means millions are automatically included in the claim unless they choose to withdraw, a mechanism designed to hold large corporations accountable for alleged breaches of competition law.
What Happens Next?
The appeal process will now unfold, with a group of related cases scheduled to go to trial in 2026. The central argument from claimants is that Apple should have charged developers fair, 'non-abusive' fees for App Store distribution, which would have led to lower prices for end users.
This landmark legal fight underscores a growing global scrutiny of the power wielded by major technology companies and their revenue practices. The outcome could set a crucial precedent for how digital marketplaces operate in the UK and potentially influence regulatory approaches worldwide.
