The UK’s Competition and Markets Authority (CMA) is initiating measures to dismantle what it views as an “effective duopoly” held by Apple and Google over mobile app platforms. It has proposed a series of changes designed to grant app developers the ability to guide users toward alternative payment methods outside the confines of traditional app stores.
According to the CMA, current constraints stifle competition by preventing developers from offering consumers more affordable or varied purchasing options. Presently, Apple and Google impose commissions that can reach up to 30% on certain in-app transactions. By enabling developers to “steer” users towards alternative payment solutions, the regulator believes this could empower developers with more control and potentially invigorate competition within the mobile app marketplace, where the majority of UK smartphone users interact with platforms controlled by these two tech giants.
Companies such as Spotify have already circumvented app store payment systems to avoid hefty commission fees, opting instead to direct customers to their websites. The CMA suggests that eliminating these barriers would enhance choice for businesses and consumers alike. Additionally, the authority is evaluating whether Apple should be required to offer broader access to its near-field communication technology, potentially paving the way for developers to create alternative contactless payment systems on iPhones.
Apple has expressed concerns that the proposed changes might undermine user protections, including vital security measures, privacy controls, and safeguards against fraudulent activities. Meanwhile, Google has highlighted that it has already implemented some adjustments that permit developers to direct users towards external payment options.
This initiative by the CMA comes in the wake of its decision to designate Apple and Google as possessing strategic market status. This classification grants the regulator enhanced power to enforce specific regulations on the business operations of these companies.