Apple’s Chief Financial Officer, Kevan Parekh, rejected claims that the App Store generates a 75% profit margin during a UK antitrust trial. He called the figure “inaccurate” and stressed that costs associated with the platform cannot be easily separated from the company’s integrated services.
Antitrust Accusations and Legal Context
The ongoing case, led by academic Dr. Rachael Kent, accuses Apple of using its control over app distribution to overcharge consumers. Representing 20 million UK iOS users, the lawsuit seeks £1.5 billion in damages. The case argues that Apple’s 30% commission on app transactions is excessive and burdens app developers and consumers alike.
Parekh defended Apple, explaining that app commissions fund critical services, including developer tools, security, and app marketing. He further emphasized that assessing the App Store’s profitability in isolation oversimplifies the operational dynamics of Apple’s ecosystem.
Global Implications and Regulatory Actions
This trial is part of a broader global discussion around app store practices. The European Union’s Digital Markets Act has already required Apple to allow third-party app stores, increasing pressure on the company to change its model. However, Apple warns that alternative app stores could compromise user security and privacy.
Looking Ahead
This trial could set a precedent for future legal battles involving major tech companies like Google and Amazon. If the court rules against Apple, it may lead to significant changes in app store policies worldwide.
Apple maintains that its practices align with industry norms and offer value to developers and users. As the seven-week trial unfolds, its outcome could shape the future of app distribution and consumer protection globally.
