In its recent public relations event, Apple shared the impact of regulatory changes on the App Store business model. The company’s chief financial officer, Kevan Parekh, stated that these changes, both in the United States and global markets, are beginning to affect service growth.

Apple achieved a quarterly record in service revenue in the third quarter of fiscal year 2026, reaching $30.7 billion. While this represents a 12% year-over-year increase, it also marks the first quarter-over-quarter decline since 2022.

Regulations and market dynamics are slowing growth.

It is suggested that App Store performance plays a significant role in slowing growth in the services category. Kevan Parekh emphasized that the challenges in the mobile gaming sector and the changes in the new business model implemented in different countries have had an impact on this situation.

Apple has had to adapt to alternative app distribution formulas and new payment options in regions such as Japan, Brazil, and the European Union. In the United States, legal proceedings are ongoing regarding the collection of commissions from payments made through external contacts in the Epic Games case.

The Supreme Court has agreed to hear Apple’s appeal regarding the decision on external contact processes. In this process, the company continues its activities with court decisions regarding whether it can collect commissions from processes other than in-app purchases.

Changes in film revenues also had an impact.

It is stated that App Store regulations are not the only reason for the slowdown in the services category. The high revenue generated by the F1 movie, which was released at the same time last year, created a difference in year-to-year comparisons due to the absence of a similar production this year.

Parekh reminds that the F1 movie had a positive impact on financial results in both the June and September quarters. This is another factor explaining why the annual growth rates in the services category fell below expectations.

Apple claims that the App Store accounts for approximately one-third of its total services revenue, with game applications covering a large portion of this revenue. The company also added that despite all these legal challenges, the App Store reached a record revenue level in the June quarter.

How do you think these legal changes in Apple’s App Store business model will affect the company’s future growth strategies?