UK regulator CMA proposes letting app developers steer users to cheaper payment options, bypassing Apple and Google app store fees.
Britain's competition regulator wants to make it easier for smartphone users to pay for apps and subscriptions outside the tightly controlled ecosystems run by Apple and Google, a move that could squeeze the tech giants' lucrative app store fees and reshape how UK consumers spend money on mobile software.
At a Glance
- The Competition and Markets Authority proposed rules on Tuesday, June 30
- Developers would be allowed to steer users to payment options outside app stores
- Any steering fees would need to be fair, reasonable and lower than current commissions
- Apple could be required to open up its NFC technology for third party payment apps
- Google says it already made similar changes to Play Store terms this month
What the CMA Is Proposing
The Competition and Markets Authority laid out plans that would strip away restrictions currently stopping UK app developers from pointing users toward payment methods outside Apple's App Store and Google's Play Store. Right now, Apple bans this kind of steering outright, while Google allows it only in limited circumstances. Under the new framework, developers would gain much wider freedom to tell customers, for instance, that a subscription is cheaper if bought through a website rather than inside the app.
The regulator was careful to note that Apple and Google could still charge for allowing that steering to happen, since maintaining the app store infrastructure isn't free. But those fees would have to be reasonable and set lower than what the companies currently collect in commissions. The CMA also expects any savings from lower fees to either reach consumers directly or get funneled back into product development rather than simply padding profit margins.
NFC Access Could Be Next
Beyond payment steering, the watchdog is weighing whether to force Apple to open up its near field communication chip, the technology behind tap to pay features like Apple Pay. If that happens, developers could build their own contactless payment tools directly into iOS apps instead of relying exclusively on Apple's system. That would represent a meaningful crack in one of Apple's most tightly guarded pieces of hardware access.
How Apple and Google Are Responding
Google didn't wait long to react. In an emailed statement, the company said it had
