bbieron@platformeconomyinsights.com

Apple is Appealing Big UK Court Loss on App Store Pricing

Jan 1, 2026

Report from Guardian

In Brief – Apple has appealed the 2025 decision of the UK’s Competition Appeal Tribunal (CAT) that the iPhone giant violated competition law by imposing excessive App Store commissions on developers, leading to overcharges being passed on to consumers. The CAT decision requires Apple to pay damages to about 20 million UK iPhone and iPad users that could total £1.5 billion. The competition tribunal ruled that Apple abused its market power and that its 30% commission on in-app purchases was unfair. The panel determined that Apple should have charged commissions of 17.5% on app sales 10% on in-app purchases, with half the overcharges being passed to consumers. The company said it strongly disagrees with the original ruling over the App Store fees and that the tribunal took a flawed view of the “thriving and competitive app economy” where Apple faces “vigorous competition”. If the appeal fails, anyone in the UK who made App Store purchases between 2015 and 2024 could be eligible for compensation.

Context – Epic Games spearheaded a global app developer legal campaign to force Apple and Google to drastically lower commissions on in-app purchases. Apple largely won the first legal battle US court in 2021. It’s “walled garden” model that appealed to customers on security, privacy, and user experience came out on the right side of federal antitrust law. But things have gone downhill for the two mobile ecosystem giants since. Google lost to Epic in US court despite a much more open regime. And while Epic’s federal antirust complaints against Apple failed, they prevailed on a complaint involving California’s Unfair Competition Law and won an order allowing app developers to appeal to users to circumvent Apple’s fees. Apple, Epic and that federal judge are continuing legal proceedings to determine the right fee levels, with a federal appeals court ruling that zero fees are too little. The iPhone giant is facing similar rulings to open their walled garden and lower fees in the EUJapanSouth Korea and Australia, as is Google. Competition between Apple and Android has proven nearly meaningless.

View By Monthly
Latest Blog
OpenAI Reaches Defense Department Deal Flanking Anthropic

Report from the New York Times In Brief – OpenAI says it has reached agreement with the US Department of Defense (DoD) to supply AI for classified systems in a manner that the company says addresses its opposition to the technology being misused in autonomous weapons...

Federal Judge Blocks Virginia’s One-Hour Time Limit for Social Media

Report from Reuters In Brief – US District Judge Patricia Tolliver Giles has issued a preliminary injunction blocking Virginia from enforcing Senate Bill 854 that imposes a time limit on teens using social media platforms with so-called “addictive” features. Platforms...

FTC Chairman Accuses Apple of News Media Viewpoint Discrimination

Report from the New York Times In Brief – The Federal Trade Commission announced that it sent a warning letter to Apple CEO Tim Cook expressing concerns that the operations of the Apple News may favor certain political viewpoints in a way that conflicts with Apple’s...

PM Starmer Proposes Bringing AI Chatbots Under the UK Online Safety Act

Report from Bloomberg In Brief – UK Prime Minister Keir Starmer has announced plans to bring AI chatbots directly under the Online Safety Act (OSA) to close what he called a “legal loophole” in Britain’s online safety regime and ensure that they are designed to not...

Reddit Fined By UK ICO for Failing to Age Check 13-Year-Olds

Report from the BBC In Brief – The UK’s data protection regulator, the Information Commissioner's Office (ICO), has fined Reddit more than £14 million for failing to adequately enforce its rules regarding children under 13 accessing the platform. Following an...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required