Apple admits antitrust regulations are impacting services business

Apple has acknowledged for the first time that regulatory antitrust measures are impacting its services business, a segment valued at over $100 billion. In recent legal filings, the company warned that it “could receive no commission at all” on transactions conducted through third-party payment systems.

Recent financial data reflects this shift. Apple reported services revenue of $30.7 billion for the quarter ending in June, falling short of Wall Street expectations of $31.4 billion. Additionally, services gross margins reached 75.6%, also missing analyst forecasts.

Market research supports these findings. Sensor Tower reported that U.S. consumer spending via the App Store fell 6% in the second quarter, compared to a 9% increase the previous year. Appfigures estimated that Apple’s commission revenue in the U.S. has declined by 18% so far this year.

Global regulatory pressure from the European Union, South Korea, Brazil, and others has forced Apple to allow alternative payment methods and third-party app stores. These changes directly challenge Apple’s long-standing business model of collecting commissions of up to 30% on digital purchases and subscriptions.