Apple has lost a landmark UK antitrust lawsuit, which ruled it charged “excessive and unfair prices” for app distribution and in-app purchases.
As Reuters reports, the Competition Appeal Tribunal (CAT) ruled yesterday that Apple abused its position as a dominant company in the app distribution market to overcharge consumers.
The lawsuit was originally brought to trial by academic Rachael Kent, who argued that Apple made “exorbitant profits” with its 30% commission fee for consumers, developers, and businesses.
Apple has appealed the decision. The tech giant could face £1.5 billion in damages, which will be decided at a hearing next week which will also take Apple’s appeal into account.
In response, an Apple spokesperson said (via BBC News): “This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.
“The App Store faces vigorous competition from many other platforms – often with far fewer privacy and security protections.”
Speaking exclusively to GamesIndustry.biz, Xsolla president Chris Hewish says the judgment “marks a major shift for mobile gaming.”
“The tribunal found Apple’s 30% commission excessive, signalling potential relief for developers long constrained by high fees,” Hewish notes.
“If upheld, this could lower Apple’s cut closer to competitive levels, freeing more revenue for studios and possibly reducing in-app prices.”
He adds: “It also strengthens calls for alternative payment systems and distribution methods, eroding Apple’s control over the iOS ecosystem. While Apple plans to appeal, the ruling bolsters global regulatory pressure and may accelerate fairer revenue sharing, empowering mobile game developers to reinvest in content, marketing, and innovation instead of platform commissions.”
