The UK’s Competition and Markets Authority (CMA) is taking action to address what it sees as a dominant control by Apple and Google over mobile app platforms. The regulator is proposing changes that would enable app developers to guide users towards alternative payment methods outside of the traditional app stores. This move aims to foster competition by allowing developers to offer cheaper or alternative purchasing options to consumers, as current restrictions limit their ability to do so. Apple and Google currently levy commissions of up to 30% on certain in-app purchases.
By allowing developers to “steer” users towards different payment systems, the CMA believes it could enhance competition within the mobile app market, where Apple and Google hold sway over the platforms used by the majority of smartphone users in the UK. Some developers, like Spotify, have already circumvented app store fees by directing consumers to make purchases through their websites. The CMA argues that removing existing barriers could lead to greater choice for both businesses and consumers.
The regulator is also exploring whether Apple should permit broader access to its near-field communication (NFC) technology. This access could potentially enable developers to create alternative contactless payment solutions on iPhones, further expanding consumer options. However, Apple has expressed concerns that the proposed changes might compromise user protections, including security measures, privacy, and anti-fraud features.
Google, on the other hand, has noted that it has already implemented some changes that allow developers to guide users to external payment options. The CMA’s actions come after it classified Apple and Google as having strategic market status, a designation that grants the regulator more authority to enforce specific rules on the business practices of these tech giants.