Apple, the US iPhone giant long accused of heavy-handed tactics and previously fined for patent violations, has suffered another major legal setback after a UK court ruled that it abused its market dominance by charging app developers excessive commissions.

The ruling from the UK Competition Appeal Tribunal found that Apple failed to justify the high fees it imposes through its App Store, forcing the company to pay damages for overcharging millions of users.

The decision comes amid growing scrutiny of Apple’s business practices, including its treatment of both developers and retailers, who often face tight margins and strict contractual terms when selling Apple products.

The case, led by consumer lawyer Rachael Kent and filed in 2021, alleged that Apple used its control over the App Store to extract “exorbitant” commissions, ultimately driving up costs for “captive” iPhone and iPad users. Lawyers for Kent estimated that Apple could face compensation claims exceeding A2.8 billion.

“The tribunal has found that Apple abused its dominant position by charging excessive and unfair prices,” the judgment stated.

The ruling marks Apple’s second blow in the UK this week, following a move by the Competition and Markets Authority to place the company under new Big Tech regulations — opening its mobile ecosystem to closer regulatory scrutiny.

Apple, as they normally do have rejected the findings.

“This ruling overlooks how the App Store helps developers succeed,” a company spokesperson said, insisting that the decision misrepresents the competitiveness of the app economy.

Lawyers for Kent’s legal team at Hausfeld & Co. said that anyone who purchased digital content through Apple’s App Store since October 1, 2015, may be entitled to compensation for Apple’s “anti-competitive practices.”

Apple has confirmed it intends to appeal the decision.