Apple faces paying up to 拢1.5 billion in compensation after the Competition Appeal Tribunal (CAT) ruled that it abused its dominant market position by overcharging millions of UK iPhone and iPad users for apps and in-app purchases.
The case – Kent v Apple – was brought by Dr Rachael Kent, senior lecturer at King鈥檚 College London, who has made history as the first female Class Representative under the UK鈥檚 collective action regime.聽
The tribunal found that Apple had 鈥榠mposed exclusionary practices鈥� and charged 鈥榚xcessive and unfair鈥� fees on app purchases, subscriptions and digital content over a ten-year period.
The ruling, in favour of Dr Kent on all aspects of her claim, concluded that users were overcharged for digital purchases made through popular apps including YouTube, Tinder, Fortnite and Candy Crush, among others.聽
The commission did not apply to transactions for physical goods or services such as Uber or Deliveroo.
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鈥淭his is a landmark victory – not only for App Store users, but for anyone who has ever felt powerless against a global tech giant,鈥� said Dr Kent.聽
鈥淭he tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years – and that up to 拢1.5bn should now be returned to UK consumers and businesses.聽
鈥淓very in-app purchase, subscription, and paid download was inflated by Apple鈥檚 anti-competitive practices. Those unfair fees have added up to billions for the world鈥檚 richest company, and less choice and innovation for everyone else.聽
鈥淭his case proves that the UK鈥檚 collective action regime is working. It empowers ordinary people and small businesses to hold even the most powerful corporations to account.聽
鈥淭oday鈥檚 ruling sends a clear message: no company, however wealthy or powerful, is above the law.鈥�
Typically, the Steve Jobs-founded tech giant takes a 30% commission on app purchases and subscriptions by requiring all payments to go through its own App Store system.
The tribunal said Apple鈥檚 restrictions 鈥榗annot sensibly be justified as being necessary or proportionate鈥� and that competition would deliver better value and choice for consumers.
Apple has told the BBC that it 鈥榮trongly disagreed鈥� with the ruling and intends to appeal.
The decision marks the first successful collective action of its kind in the UK and opens the door for nearly 36 million consumers and businesses to claim compensation.聽
Anyone in the UK who purchased paid apps, subscriptions or digital in-app content from the App Store since 1 October 2015 may be eligible, and can check their purchase history via their App Store account.
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