[A photo representing an Apple store. Photo Credit to Rawpixel]

Apple has been found guilty of imposing “excessive and unfair” prices through its 30% commission on its app sales and in-app purchases, according to a ruling by the UK’s Competition Appeal Tribunal (CAT). 

The tribunal sided against Apple in a lawsuit that claimed the company’s “100% monopoly position” allowed it to enforce restrictive terms and extract unjust commissions from app developers.

Apple responded by rejecting  the verdict, stating that the ruling “takes a flawed view of the thriving and competitive app economy” and confirmed its plans to appeal.

The CAT’s decision may force Apple to pay up to £1.5billion in damages inflicted on 36 million UK iPhone and iPad users.

The case was brought forward by academic Dr. Rachael Kent and her legal teams, who argued that Apple had deliberately excluded competitors from the app distribution market, enabling it to reap disproportionate profits.

Dr. Kent hailed the decision, saying, “Today’s ruling sends a clear message: no company, however wealthy or powerful, is above the law.” 

This ruling also closely follows a recent decision by the UK’s Competition and Markets Authority (CMA), which officially classified both Apple and Google as having "strategic market status.”

The CAT said developers were overcharged by an average commission of 17.5%, and many passed these extra costs on to consumers.

Apple disputed these findings, insisting that 85% of apps on its App Store pay no commission at all.

In a statement, an Apple spokesperson said, “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 tribunal’s ruling also clarified that both consumers and businesses who made purchases through the App Store may be eligible for compensation.

Dr. Kent’s lawyers stated that “any UK user of an iPhone or iPad who purchased paid-for apps, subscriptions or made in-app purchases of digital content within the UK storefront of the App Store at any point since 1 October 2015 is potentially entitled to compensation from Apple.”

Although it remains undetermined exactly who or which businesses are able to claim or how much this claim will pay out.

This lawsuit represents the first successful mass legal action in the UK against a major technology company, illustrating the growing power of Britain’s class-action-style legal system, which reached its 10th anniversary this year.

There are still many other similar cases in Britain, as well as the U.S. and others, awaiting to be taken to trial; one includes nearly the exact same case regarding Google and the Play Store.

Amazon and Microsoft also face similar claims at the CAT.

This case could set a precedent for how regulators handle long-standing exclusivity practices in the technology sector, potentially reshaping how big tech platforms operate in the UK and the globe.