Apple Hit With ₹1.75 Lakh Crore UK Fine Over App Store Fees
Apple is facing one of its biggest legal setbacks in the United Kingdom. A London tribunal has ruled that the tech giant abused its dominant position in the app distribution market, charging developers excessive fees through its App Store. This landmark decision could cost Apple nearly £1.5 billion — that’s around ₹1.75 lakh crore — in damages
The ruling, delivered by the Competition Appeal Tribunal (CAT), marks a turning point in how Big Tech is held accountable for monopolistic practices. It also sets the stage for future lawsuits, including a major case against Google’s Play Store expected in October 2026.
UK Antitrust Ruling: What Apple Did Wrong
Between October 2015 and December 2020, Apple allegedly imposed unfair restrictions on app developers. The CAT found that:
- Apple charged up to 30% commission on app sales and in-app purchases.
- Developers had no alternative but to use Apple’s payment system.
- These costs were passed on to consumers, inflating app prices
Apple claimed its commission was fair, citing a 17.5% benchmark. However, the tribunal disagreed, stating that Apple’s monopoly allowed it to extract “exorbitant profits.”
Who Filed the Lawsuit Against Apple?
British academic Rachael Kent led the charge, filing the case on behalf of nearly 20 million iPhone and iPad users in the UK. Her legal team argued that Apple’s practices blocked competition and hurt both developers and consumers.
This lawsuit is the first mass consumer action under the UK’s class action-style regime, which has seen limited success until now. But this ruling could change that.
How Apple’s App Store Fees Impact Developers & Users
Apple’s 30% commission has long been a point of contention. Developers argue it stifles innovation and limits their ability to offer competitive pricing. Here’s how it affects the ecosystem:
- Developers: Lose a significant chunk of revenue to Apple.
- Consumers: Pay higher prices for apps and in-app purchases.
- Startups: Struggle to compete due to high entry costs.
The CAT confirmed that about half of Apple’s excessive fees were passed directly to users
Apple’s Response: “We’ll Appeal”
Apple has announced plans to appeal the decision. A spokesperson said the ruling “overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments.”
A hearing is scheduled next month to determine the final damages and review Apple’s appeal application Times Now.
Global Impact: What This Means for Big Tech
This UK ruling could have ripple effects across the globe. Other tech giants like Google and Meta are already under scrutiny for similar practices. Key developments to watch:
- Google Play Store Lawsuit: Set for trial in October 2026.
- Epic Games vs Apple (US): Ongoing battle over app store commissions.
- EU Digital Markets Act: Tightening regulations on platform monopolies.
If Apple loses its appeal, it may have to revise its App Store policies not just in the UK, but worldwide.
🔗 External Links for Further Reading
- Apple Faces Rs 1.75 Lakh Crore Penalty – Times Now
- Apple Loses UK Lawsuit – Hindustan Times
- Apple UK Antitrust Case – MacRumors
FAQs: Apple & Google App Store Penalties and Lawsuits
1. ❓ Did Apple really get fined ₹1.75 lakh crore in the UK?
Yes, Apple faces a potential penalty of around ₹1.75 lakh crore (£1.5 billion) after losing a major antitrust case in the UK. The Competition Appeal Tribunal ruled that Apple abused its market dominance by charging excessive fees to app developers between 2015 and 2020.
2. ❓ Has Apple paid the UK penalty yet?
No, Apple has not paid the penalty yet. The company plans to appeal the decision, and a hearing is scheduled to determine the final damages and review its appeal application.
3. ❓ What was Apple accused of in the UK lawsuit?
Apple was accused of:
- Charging developers up to 30% commission on app sales.
- Blocking competition by forcing developers to use its payment system.
- Passing inflated costs to consumers.
The tribunal found these practices unfair and anti-competitive.
4. ❓ Who filed the lawsuit against Apple?
The case was filed by British academic Rachael Kent on behalf of nearly 20 million iPhone and iPad users in the UK. It’s the first mass consumer lawsuit under the UK’s class action-style regime to reach trial.
5. ❓ Is Google facing similar legal trouble?
Yes, Google is facing a major lawsuit over its Play Store fees. A trial is scheduled for October 2026 in the UK. The case focuses on developer commissions and alleged anti-competitive practices similar to Apple’s.
6. ❓ Has Google paid any penalties yet?
As of now, Google has not paid any penalties related to the UK Play Store case. The trial is still pending, and no ruling has been issued yet.
7. ❓ What is the typical commission Apple and Google charge developers?
Both Apple and Google typically charge up to 30% commission on app sales and in-app purchases. Critics argue this is excessive, especially for smaller developers.
8. ❓ How do these lawsuits affect app developers?
These lawsuits could lead to:
- Lower commission rates.
- More freedom in choosing payment systems.
- Better pricing for consumers.
- Increased competition in app distribution.
Developers in India, especially in tech hubs like Bengaluru and Hyderabad, could benefit if global policies shift.
9. ❓ Could similar lawsuits happen in India?
Yes, it’s possible. India’s Competition Commission has already investigated Google for similar issues. If the UK and US cases succeed, it may encourage Indian developers to pursue legal action.
10. ❓ What should developers and users watch for next?
Key upcoming events:
- Apple’s appeal hearing in the UK.
- Google’s Play Store trial in October 2026.
- Epic Games’ ongoing lawsuit against Apple in the US.
- EU’s Digital Markets Act enforcement.
These could reshape how app stores operate globally.
