Hausfeld and Gibson Dunn act as Apple loses £1.5bn class action

Apple could be on the hook for damages of up to £1.5 billion after the Competition Appeal Tribunal ruled that it abused its dominant market position by overcharging developers and consumers through its App Store fees - in a first for UK collective action cases.

The decision - handed down on Thursday (23 October) - follows an opt-out collective action brought on behalf of some 36 million UK consumers which went to trial in January, with litigation specialist Hausfeld acting for the claimants and Gibson Dunn defending Apple.

It’s the first time a collective action has succeeded at trial under the UK’s competition regime - introduced by the Consumer Rights Act 2015, which opened the door for US-style opt-out class actions to be brought in the UK for the first time.

The case

The claim was led by Dr Rachael Kent, a lecturer at King’s College London, and backed by litigation funder Vannin Capital. It centred on the 30% commission Apple takes on App Store purchases.

In a unanimous decision, the Tribunal found the charges "excessive and unfair" and in breach of competition law. Apple’s restrictions on app distribution, it said, "cannot sensibly be justified," adding that open competition "would deliver the benefits consumers want, in the form and at the price point they want them."

The ruling could force Apple to open its famously insular ecosystem to rival app stores - in a major shift for the Cupertino-headquartered company’s UK operations.

Apple says it "strongly disagrees" with the ruling and intends to appeal.

Class actions in the spotlight

The ruling marks another development in the UK’s fast-evolving collective actions landscape.

Earlier this year, Merricks v Mastercard settled for £200 million, a fraction of its estimated £14 billion valuation - in a result that prompted funder Innsworth to launch arbitration proceedings against class representative Walter Merricks and raised questions over the effectiveness of the UK’s collective action regime.

That followed Le Patourel v BT, where Simmons & Simmons successfully defended BT in the first opt-out action to reach trial last year.

The victory for Dr Kent also lands ahead of a parallel action against Google, again led by Hausfeld and funded by Vannin, over fees on the Google Play Store. That case, led by consumer advocate Liz Coll, is due to be heard in early 2026.

Advising

Hausfeld acted for class representative Rachael Kent, with a team led by partner Lesley Hannah. The firm instructed counsel from Brick Court Chambers and Monckton Chambers.

Gibson Dunn represented Apple.