App Store growth slowdown pressures tech giants

What happened: The UK's Competition and Markets Authority (CMA) plans to challenge Apple and Google's dominance in mobile app stores by allowing developers to bypass their payment systems. This comes as Apple faces near-term pressure due to slowing App Store growth, with UBS estimating June 2026 quarter growth at approximately 3%.

Market impact: This narrative impacts tech giants Apple and Google, potentially disrupting their app store revenue streams. It also affects app developers, who may now have more options for user purchases, potentially reducing their reliance on Apple and Google's platforms.

What to watch next: Investors should monitor the CMA's final decision on breaking the app store duopoly, expected in late 2026. Additionally, Apple's Q3 2026 earnings, scheduled for early August, will provide further insight into the App Store's growth trajectory.