Apple has accepted a London tribunal decision that found its App Store commission structure abused its dominant position, and the company was denied permission to appeal the ruling on November 13 2025. The tribunal, which examined conduct from October 2015 through the end of 2020, concluded that Apple’s 30 % commission on paid apps and in‑app purchases was excessive and that the practice raised consumer prices. The court has ordered that Apple may be liable for up to £1.5 billion in damages, a figure that reflects the estimated harm to more than 1,500 UK developers and consumers.
The ruling is a stark reminder of the growing regulatory pressure on Apple’s App Store model. In the United States, Apple has faced a $500 million fine from the European Union, and the UK’s Competition and Markets Authority has granted Apple “strategic market status,” giving regulators the power to impose binding requirements such as allowing rival app stores. Apple’s own defense—“the ruling takes a flawed view of the thriving and competitive app economy”—highlights the company’s insistence that its commission structure is necessary for security, privacy, and a robust developer ecosystem.
Apple’s Services segment, which generated $78.5 billion in revenue in 2024 (up 5 % from $74.5 billion in 2023), accounts for a substantial portion of the company’s earnings. The App Store contributed roughly $28.5 billion of that figure, a 4 % increase from $27.3 billion in 2023. A potential £1.5 billion liability—equivalent to about $2 billion—could therefore represent a material hit to the Services margin, which has been a key driver of Apple’s profitability in recent years.
Management’s reaction to the ruling was cautious. Apple’s senior executive team reiterated that the company believes its commission model is justified by the value it delivers to developers and consumers. The company also indicated that it will explore ways to mitigate the financial impact, including reviewing its pricing strategy and engaging with regulators to clarify the legal framework. Analysts noted that the ruling could prompt further scrutiny in other jurisdictions, potentially leading to additional regulatory actions that might force Apple to adjust its App Store policies.
Investors and market observers are watching closely for how Apple will respond. The ruling underscores the risk that regulatory decisions could erode the company’s services revenue and margin. While Apple’s long‑term strategy remains focused on maintaining a secure and high‑quality app ecosystem, the potential liability and the broader trend of antitrust scrutiny suggest that the company may need to adapt its business model to navigate an increasingly complex regulatory landscape.
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