Apple Appeals UK £2B App Store Compensation Ruling

Apple has filed an appeal with the UK's Court of Appeal to challenge a landmark ruling that ordered the company to pay up to 2 billion pounds in compensation to millions of British iPhone users overcharged through its App Store practices.

The Competition Appeal Tribunal issued the decision in October, finding that Apple abused its dominant position in app distribution from October 2015 to November 2024. The tribunal determined that Apple's standard 30 percent commission on app sales and in-app purchases was excessive, estimating fairer rates at around 17.5 percent for app sales and 10 percent for in-app transactions. It concluded that developers passed on roughly half of these overcharges to consumers, affecting an estimated 36 million UK Apple users who made qualifying purchases during the period.

The case was brought by Dr. Rachael Kent, a senior lecturer at King's College London, representing consumers in what tribunal members described as one of the largest collective competition actions in UK history. If the appeal fails, eligible users could receive payouts ranging from 27 to 75 pounds each, depending on their spending. The opt-out class action system means most affected...