Britain's competition authority is considering new rules that could let app developers guide users to alternative payment methods. The move aims to reduce fees and increase competition in the UK app market.
Britain's Competition and Markets Authority (CMA) has proposed changes that could reshape how app developers monetize their products on Apple and Google's platforms. The regulator is considering allowing developers to direct users to payment options outside the official app stores, a shift that could lower transaction fees and increase competition for UK publishers and digital businesses.
Currently, Apple prohibits and Google restricts UK developers from steering users to off-platform payment systems. The CMA's proposal would remove these limitations, with the expectation that any fees charged by Apple or Google for such "steering" must be fair, evidence-based, and lower than existing app store commissions. The CMA stated that savings should benefit consumers or be reinvested in innovation.
The regulator is also reviewing whether Apple should be required to open its near-field communication (NFC) technology to third-party developers. This could enable UK fintech firms to offer new payment services within iOS apps, including alternatives to Apple's wallet and support for digital currencies.
These proposals are part of a consultation under the UK's new digital markets regime, which grants the CMA authority to impose tailored requirements on companies with "strategic market status." Apple and Google received this designation last year, giving the regulator more direct oversight of their mobile ecosystems.
Google responded by highlighting recent Play Store policy changes that allow developers to guide users to external payment options. The CMA said it will review these updates before deciding whether to impose formal requirements. Apple, however, maintains that allowing off-platform payments could compromise user security and fraud protections, and has voiced concerns about potential scams and the loss of parental controls.
Earlier this year, the CMA secured commitments from both companies to improve app store fairness and transparency, including changes to rankings and access to certain features. However, these commitments did not address commission rates, which can reach up to 30%. The regulator has identified enabling alternative payment methods as a priority, a topic also under scrutiny by authorities in the European Union, United States, and Japan.
For those interested in how publishers are responding to platform control and licensing, a recent story explores how People Inc. is blocking AI scrapers and prioritizing creator trust in its licensing deals: read more about their approach here.
