Antitrust crackdowns begin to erode Apple's $100 billion services business.

Apple has acknowledged for the first time that new regulatory rules have forced it to relax its control over the App Store, putting pressure on its service business, which exceeds $100 billion. This rare statement indicates that antitrust regulatory measures are starting to undermine one of the company's most profitable business segments. Apple's service revenue and profit margins released this month were both below Wall Street expectations, and in its latest regulatory filing, the company warned that if users complete transactions through third-party payment systems, Apple "may be completely unable to collect commissions." This disclosure is the clearest signal to date that court rulings and regulatory interventions in the U.S., Europe, and elsewhere over the years are gradually eroding the commission income that supports Apple's highly profitable service business. Recent research also confirms this trend. Mobile data analytics firm Sensor Tower reported that in the second quarter, consumer spending in the U.S. App Store declined by 6% year-over-year, compared to a 9% increase in the same period last year; Appfigures estimates that Apple's commission revenue in the U.S. market has shrunk by 18% so far this year. Courts and regulators in multiple countries around the world have compelled Apple to relax control over payment and distribution in apps, eroding up to 30% of commission income from in-app digital purchases and subscription services.