Apple Argues UK App Store Proposal Amounts to Price Regulation

Apple Inc. has formally objected to proposed UK regulations for its App Store, arguing in a submission to the country's competition watchdog that the new rules would effectively amount to price regulation and could stifle innovation.

Apple's Position

In a submission to Britain’s Competition and Markets Authority (CMA), the iPhone maker stated that proposed "steering" requirements would grant the regulator a "highly intrusive" role in managing its business. The proposals would allow app developers to direct users to payment options outside of Apple’s App Store, a change Apple argues goes beyond simply promoting competition.

To support its case, Apple said the App Store facilitated over £46.5 billion ($61.8 billion) in UK billings and sales in 2025, with its commissions accounting for less than 3.5% of that total. The company also asserted there was no evidence that changes to its payment model would lead to lower prices for consumers.

"Under the (consultation), the CMA would not only regulate Apple’s prices, but also restrict the products and services for which Apple can charge a commission," the company said in its submission, according to Reuters.

Regulatory Context and Opposition

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The CMA's consultation is part of the UK's new digital markets regime, which gives the watchdog increased power to impose specific requirements on companies designated as having "strategic market status." Apple and Google were both designated under this regime last year. The regulator's stated goal is to boost competition and consumer choice.

Advocacy groups have long campaigned against the practices of major app stores. Gene Burrus, global policy counsel for the Coalition for App Fairness, told Reuters that Apple’s arguments overlook the challenges developers face. "Apple is using its position as the dominant platform gatekeeper to give itself unfair and unwarranted competitive advantages," Burrus said.

Market Implications

This dispute highlights the growing global regulatory scrutiny facing the business models of major technology platforms. The final outcome in the UK could set a significant precedent for how digital marketplaces and their associated fees are regulated in other major economies.

For investors, the ongoing battle over App Store commissions represents a key risk factor for Apple's high-margin services division. Any mandated changes forcing Apple to allow alternative payment systems could impact a significant source of revenue, though the company maintains its fees are critical for ensuring the security and quality of its ecosystem.