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The Competition Appeal Tribunal has handed down judgment in the class action Dr Rachael Kent v (1) Apple Inc. (2) Apple Distribution International Ltd [2025] CAT 67. The judgment summary can be found here.
The claim concerned purchases by users of Apple devices of iOS apps and in-app content (including subscriptions). The CAT concluded that Apple had abused its dominant position by foreclosing competition in the iOS app distribution services market and the iOS in-app payment services market, by tying its payment services for iOS in-app payments to the App Store, and by charging excessive and unfair prices in the form of the Commission that it charges developers for iOS app distribution services and iOS in-app payment services.
Apple charges a headline rate of commission of 30% to iOS app developers. The CAT found that developers had suffered an overcharge in the iOS app distribution services market of the difference between a Commission set at 17.5% and the Commission actually charged, and an overcharge in the iOS in-app payment services market of the difference between a Commission set at 10% and the Commission actually charged. It found that the rate of incidence at which developers passed on the overcharge to iOS device users was assessed at 50%.
The CAT therefore found that Dr Kent is entitled to damages in respect of the claims of class members, assessed on an aggregate basis. Finally, it found that Dr Kent is entitled to interest on those damages at a simple rate of 8%.
Dr Kent’s claim is the first collective action brought under section 47B of the Competition Act 1998 to succeed at trial.
Tim Ward KC, Michael Armitage and Antonia Fitzpatrick (instructed by Hausfeld & Co. LLP), appeared on behalf of Dr Kent.
Julian Gregory (instructed by the Competition and Markets Authority Legal Department) appeared on behalf of the Competition and Markets Authority.
The case has been widely covered by the Lawyer, BBC, Financial Times, GCR and Scottish Legal News.