Apple says UK App Store proposal amounts to price regulation

By Sam Tabahriti LONDON, July 29 (Reuters) – Apple said on Wednesday that proposed UK rules governing its App Store would amount to price regulation, arguing that plans to loosen โ€Œits control over in-app payments could undermine innovation and investment. In a submission to Britain’s โ€ŒCompetition and Markets Authority, the iPhone maker said proposed “steering”…


Apple says UK App Store proposal amounts to price regulation

By Sam Tabahriti

LONDON, July 29 (Reuters) – Apple said on Wednesday that proposed UK rules governing its App Store would amount to price regulation, arguing that plans to loosen โ€Œits control over in-app payments could undermine innovation and investment.

In a submission to Britain’s โ€ŒCompetition and Markets Authority, the iPhone maker said proposed “steering” requirements would go beyond promoting competition and give the regulator a “highly โ€‹intrusive” role in managing its business.

The CMA’s consultation, which closed on Monday, is part of its efforts to boost competition and consumer choice. Its proposed measures would allow app developers to direct users to payment options outside Apple’s App Store and Google’s Play Store and require any fees charged for such โ€Œsteering to be fair and โ reasonable.

A CMA spokesperson rejected Apple’s characterisation of the proposals as price regulation.

“Our consultation proposes principles to ensure that the fees Apple and Google charge for steering โ are fair and reasonable, not to directly set prices,” the spokesperson said.

The watchdog said it would expect steering fees to be lower than current app store charges, with savings passed on to UK customers or โ€‹reinvested โ€‹into developers’ businesses to support innovation. It added that โ€‹it was assessing feedback before making a โ€Œfinal decision.

Apple said the App Store facilitated more than ยฃ46.5 billion ($61.8 billion) in UK billings and sales in 2025, with commissions accounting for less than 3.5% of the total. It added that there was no evidence changes to its payment model would 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 โ€Œcharge a commission,” the company said in its submission.

Gene โ€‹Burrus, global policy counsel for the Coalition for App Fairness, โ€‹which has long campaigned for restrictions on โ€‹Apple and Google app store practices, said Apple’s arguments overlooked the barriers โ€Œdevelopers face.

“Apple is using its position as the โ€‹dominant platform gatekeeper to โ€‹give itself unfair and unwarranted competitive advantages,” Burrus said.

Apple has previously said developers already have multiple ways to transact with users outside its platform.

The CMA consultation is part of Britain’s โ€‹new digital markets regime, which โ€Œgives the watchdog powers to impose tailored requirements on companies designated as having “strategic market โ€‹status”.

Apple and Google were designated under the regime last year.

($1 = 0.7521 pounds)

(Reporting by Sam โ€‹Tabahriti. Editing by Mark Potter and Bill Berkrot)

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