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 its control over in-app payments could undermine innovation and investment.

In a submission to Britain's Competition and Markets Authority, the iPhone maker said proposed "steering" requirements would go beyond promoting competition and give the regulator a "highly 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 steering to be fair and 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 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 reinvested into developers' businesses to support innovation. It added that it was assessing feedback before making a final decision.

Apple said the App Store facilitated more than £46.5 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 charge a commission," the company said in its submission.

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

"Apple is using its position as the dominant platform gatekeeper to 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 new digital markets regime, which gives the watchdog powers to impose tailored requirements on companies designated as having "strategic market status".

Apple and Google were designated under the regime last year.

($1 = 0.7521 pounds)

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