Millions of Apple users across the UK could be in line for a major payout from the US tech giant following a landmark £1.5 billion lawsuit over App Store fees.

The Competition Appeal Tribunal ruled that Apple charged developers an ‘excessive and unfair’ price for distribution and payment services, as well as imposing restrictions that abused its ‘near absolute market power’ that effectively shut out competition.  

Finding unanimously in favour of Dr Rachael Kent, a lecturer at King’s College London who brought the claim on behalf of around 36 million UK iOS users, the Tribunal found that Apple’s practices eliminated all competition on iPhones and iPads for app stores and app purchases.

Despite the tech firm’s claim that it operates under ‘competitive constraints’, suggesting it doesn’t enjoy the kind of monopoly the collective action claimed, the Tribunal was not convinced, citing the fact that iOS apps can only be distributed through the App Store, and that iOS apps and in-app purchases must use Apple’s payment systems.

Comparing the prices to competitors, including Steam, the Microsoft Store and the Epic Games Store, the judges ruled that Apple’s bloated 30% commission on App Store purchases breached UK and EU competition laws, with the costs ultimately being passed on to users, opening the door for damages.

“This is a landmark victory — not only for App Store users, but for anyone who has ever felt powerless against a global tech giant,” said Dr Kent.

“The Tribunal has confirmed that Apple has been unlawfully overcharging users for more than ten years – and that up to £1.5 billion should now be returned to UK consumers and businesses.

“Every in-app purchase, subscription, and paid download was inflated by Apple’s anti-competitive practices. Those unfair fees have added up to billions for the world’s richest company, and less choice and innovation for everyone else.”

In a statement shared with the BBC, Apple said that it strongly disagreed with the ruling and would appeal, claiming the judgement took a flawed view of what is a ‘thriving and competitive app economy’, and maintained that 85% of apps in its Store do not carry a commission.

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“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,” said Apple.

Any UK consumer who purchased paid-for apps, subscriptions or made in-app purchases of digital content within the UK App Store at any point since 1 October 2015 is potentially entitled to compensation, as long as the purchases were made on an iPhone or iPad.

With the judgment, all these purchasers are automatically included within the claimant class, with device users urged to check their eligibility for compensation by logging into their App Store account and checking their purchase history.