Apple Hit With $2 Billion UK Fine in Landmark App Store Monopoly Case

Apple’s dominance over its App Store has finally been dealt a major blow in the United Kingdom. The tech giant has lost its first-ever class action-style lawsuit in the country, a case that could cost it an estimated £1.5 billion (roughly $2 billion).

The ruling by the UK’s Competition Appeal Tribunal (CAT) marks a landmark moment in Britain’s efforts to curb what critics call Apple’s monopoly on digital app distribution.

The case was filed in January 2025 by Rachel Kent, a digital economy expert and professor at King’s College London. Kent accused Apple of exploiting its position as the sole gatekeeper of the App Store, claiming that the company’s restrictive policies stifle competition and force developers – and ultimately consumers – to pay inflated prices. She argued that Apple’s 30% commission on app sales and in-app purchases was unfair and that these fees are effectively passed on to millions of UK users through higher app prices.

In its decision, the Competition Appeal Tribunal sided with Kent’s core argument, recognizing that Apple’s practices had an anticompetitive effect on the UK app market. This ruling means Apple could be compelled to pay compensation to affected consumers across the United Kingdom. The judgment represents not only a financial setback but also a reputational hit to Apple, which has long insisted its App Store provides a secure and thriving digital marketplace.

Apple, unsurprisingly, plans to appeal the verdict. In a statement, the company claimed the court had taken “a flawed view of the thriving and competitive app economy.” It argues that developers have numerous ways to reach customers, and the App Store fees fund critical infrastructure such as security, privacy protections, and developer tools.

However, this defeat comes amid a wave of similar legal challenges worldwide. In the European Union, Apple has already been forced to allow users to install third-party app stores under the Digital Markets Act (DMA), weakening its long-standing control over app distribution. Meanwhile, in the United States, Apple’s ongoing legal battle with Epic Games – best known for Fortnite – has reignited debates about Apple’s commission structure. A recent court order required Apple to allow alternative payment systems, but Apple insists it still has the right to collect commissions on external transactions. This prompted the judge to threaten the company with contempt of court and possible criminal sanctions if it fails to comply fully.

The ripple effect of these cases is already being felt globally. In Australia, Epic has petitioned courts to allow sideloading of its apps without Apple’s intervention. In China, regulators are investigating whether Apple unfairly maintains a monopoly by restricting third-party app stores and payment methods domestically, even as it complies with similar demands abroad. The British ruling could embolden more governments and consumer groups to pursue similar class action-style claims, especially in countries where Apple’s market dominance remains unchallenged.

For Apple, this growing wave of litigation threatens to reshape the very foundation of its services division – a major profit engine that generates billions annually through the App Store. What began as a single UK complaint may soon evolve into a global reckoning over how much control a single company should have over the digital ecosystem.