The UK’s Competition and Markets Authority (CMA) is aiming to dismantle the dominant control that Apple and Google hold over mobile app platforms. The regulator is suggesting reforms to enable app developers to guide users toward alternative payment avenues outside of the platforms’ app stores. Currently, Apple and Google impose restrictions that the CMA argues limit competition by preventing developers from offering consumers less costly or varied purchasing options. Both tech giants levy commissions as high as 30% on certain in-app transactions.
The CMA’s proposed changes are intended to allow “steering,” meaning developers could have more flexibility, potentially increasing competition within the mobile app ecosystem. This market is primarily dominated by Apple and Google, which host the main platforms used by most smartphone users in the UK. Some firms, such as Spotify, have already circumvented app store fees by directing their customers to their websites to avoid hefty commissions.
Additionally, the CMA is evaluating whether Apple should extend broader access to its near-field communication (NFC) technology. Such access could empower developers to create alternative contactless payment solutions for iPhone users. While examining this possibility, Apple has raised concerns that these changes might undermine user protections, including security measures, privacy controls, and anti-fraud safeguards. Meanwhile, Google has indicated that it has already implemented some modifications to permit developers to guide users to external payment choices.
The initiative by the CMA comes after its decision to designate Apple and Google with strategic market status. This classification grants the regulator enhanced authority to enforce specific regulations on their business operations. By potentially removing the current barriers, the CMA believes that both businesses and consumers could benefit from increased choices in the app marketplace.