Britain’s competition regulator is considering new rules that could force Apple and Google to loosen their control over app payments, potentially allowing developers to direct users to cheaper payment options outside the App Store and Google Play.
The UK’s Competition and Markets Authority proposed allowing app developers to steer users to alternative payment options outside Apple and Google app stores to cut fees and boost competition.
CMA Targets App Store “Steering” Rules
The proposal focuses on “steering,” or the ability of app developers to tell users that they can pay somewhere else.
Reuters reported that the CMA said the proposals would remove restrictions that currently prevent UK developers from directing users to off-platform payment options, which are banned by Apple and restricted by Google.
The fees are central to the dispute.
The Guardian reported that Apple and Google charge a commission of up to 30% on purchases made inside apps, including subscriptions.
Reuters reported that the CMA said any fees charged for allowing steering should be fair and reasonable, lower than current app store commissions, and allow savings to be passed on to consumers or reinvested in innovation.
Apple Pay and NFC Access Also Under Review
The regulator is also looking beyond app subscriptions and in-app payments. The CMA is considering requiring Apple to open access to its near-field communication technology, which is used for contactless payments. Opening Apple’s NFC technology could allow developers to offer contactless payment services within their own iOS apps.
MacRumors said this could allow developers to potentially offer alternative payment options inside their own apps.
That could be especially important for fintech companies. The change could enable UK fintech companies to build alternatives to Apple’s wallet, including account-to-account payments and emerging technologies such as digital currencies.
Strategic Market Status Gives CMA More Power
The proposals are part of the UK’s newer digital markets regime.The consultation falls under Britain’s digital markets regime, which gives the watchdog powers to impose tailored requirements on companies with “strategic market status”.
The move follows the CMA’s decision last October to give Apple and Google strategic market status because of their dominance in the mobile market.
The CMA has already pushed for some app store changes.
In February, the regulator secured commitments from Apple and Google to make their app stores fairer and more transparent, including changes to rankings, reviews and access to certain features, but those commitments did not address commissions.
Apple Warns of Scams and Lost Protections
Apple is pushing back on the proposal. Apple has argued off-platform payment links could undermine user security and fraud protections and limit its ability to verify transactions. Apple said steering changes could undermine protections for users and open the door to scams and the circumvention of parental controls.
Google, however, said it has already moved in that direction. Google said new Play Store terms introduced earlier this month already allow developers to steer users to complete transactions outside the platform.
The CMA will decide later this year whether to impose formal requirements. If adopted, the rules could reshape how UK users pay for app subscriptions and digital services, while testing whether regulators can open mobile ecosystems without weakening payment security.
