Apple (AAPL-US) on Wednesday (29th) stated that new regulations proposed by UK regulators for the App Store are effectively a direct form of price control. The company warned that further loosening its control over in-app payments could weaken incentives for innovation and investment.
In a submission to the UK's Competition and Markets Authority (CMA), Apple argued that the regulator's proposed rules on external linking go beyond simply promoting market competition and would allow the CMA to intervene in Apple's business and pricing models in a 'highly interventionist' manner.
The CMA's public consultation ended on Monday, part of the UK's broader efforts to enhance digital market competition and consumer choice. Under the proposal, app developers would be allowed to direct users to payment methods outside Apple's App Store and Google Play. If platforms charge fees for such external linking, the amounts must be 'fair and reasonable'.
Apple stated that the App Store facilitated over £46.5 billion (approximately $61.8 billion) in billings and sales in the UK market in 2025, with platform commissions accounting for less than 3.5%. Apple also claimed there is currently no evidence that changing the App Store's payment model would lead to lower prices for consumers.
Apple further argued that the CMA would not only regulate its pricing standards but also restrict which products and services Apple can charge commissions on. The company has previously maintained that developers already have multiple ways to transact with users outside the App Store.
The Coalition for App Fairness, a long-time advocate for relaxing rules on Apple and Google's app stores, countered Apple's claims, saying they ignore the real barriers developers face. Gene Burrus, the group's global policy advisor, stated that Apple is leveraging its dominant position as a platform gatekeeper to gain an unfair and unjustified competitive advantage.
This consultation is part of the UK's new digital market regulation regime, which allows the CMA to set specific rules for companies deemed to have 'strategic market status'. Both Apple and Google were designated under this regime last year.
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- Source: PR Times
- Category: News
- Organizations: Google
- Products / services: App Store