The UK's Competition and Markets Authority (CMA) is moving to break what it describes as an "effective duopoly" held by Apple and Google over mobile app stores, proposing new rules to allow developers to steer users away from the tech giants' payment systems.
Proposed steering rules to boost competition
The CMA argues that current restrictions prevent app developers from directing users to websites for purchases, forcing them to pay commissions of up to 30% on in-app transactions such as subscriptions. The regulator is consulting on lifting these constraints, which it says would introduce competitive pressure in a market where Apple and Google control at least 90% of UK mobile devices.
"This is not only because choice is inherently valuable but also because we see this as the best way to introduce some competitive pressure in a vital part of the mobile ecosystem that is otherwise sorely lacking such pressure," said Will Hayter, CMA executive director for digital markets.
Industry reactions and concerns
Google stated it has already implemented changes to allow steering, including adjustments to fees charged to apps as of this week. Apple, however, criticized the proposals, warning they could undermine user protections. "When users are directed away from Apple's trusted payment infrastructure, they lose the protections they rely on Apple to provide. We will continue to make our concerns clear in our ongoing dialogue with the CMA," an Apple spokesperson said.
The Coalition for App Fairness, which includes Spotify and Match Group, opposed the steering fee proposal, arguing any charges should be justified by transparent data from Apple and Google.
Broader regulatory moves
The CMA is also considering requiring Apple to open access to its near-field communication technology, potentially enabling contactless payment services in iOS apps. This follows the CMA's decision in October to grant Apple and Google "strategic market status" in the mobile market, allowing the watchdog to set bespoke conduct rules.
Currently, Spotify does not offer in-app subscriptions on Apple's platform to avoid the 30% commission, directing users to its desktop website instead. The CMA's proposals aim to eliminate such barriers, giving developers and users more choice in how transactions are conducted.
