Apple CFO Denies Alleged 75% App Store Profit in UK Trial

Apple’s Chief Financial Officer, Kevan Parekh, has contested claims in an antitrust trial in London that the company enjoys a 75% profit margin from its App Store, Financial Times reports.

During the proceedings at the Competition Appeal Tribunal, claimants alleged that Apple’s App Store operates with a profit margin exceeding 75%. This figure was derived from evidence presented in separate U.S. litigation and supported by an expert accountant in the UK case.

However, Parekh refuted these assertions, stating, “I wouldn’t say they’re accurate.” He emphasized the challenges in isolating the App Store’s profitability due to the integrated nature of Apple’s services. Parekh noted that while a “directional estimate” might be possible, any precise calculation would be inherently imprecise and subjective.

The lawsuit, representing approximately 20 million UK iPhone and iPad users, accuses Apple of abusing its dominant market position by imposing a standard 30% commission on app developers. Claimants argue that these fees lead to inflated costs for consumers purchasing apps and in-app content.

Apple’s legal team counters that this perspective overlooks the substantial benefits provided by its integrated iOS ecosystem, which prioritizes user security, privacy, and a seamless experience.

Apple’s App Store practices have faced increasing legal challenges worldwide. The U.S. Department of Justice has also initiated proceedings against the iPhone maker, alleging that its App Store policies suppress competition.

This trial is being closely monitored by antitrust lawyers and industry stakeholders, as it may set a precedent for future class-action lawsuits against major technology companies in the UK. Similar legal actions are anticipated against other tech giants, including Alphabet, Microsoft, and Meta, later this year.