The Competition and Markets Authority (CMA) has launched a consultation on new rules that could force Apple and Google to give UK app developers greater freedom over payments.
The UK regulator has proposed the removal of restrictions that prevent developers from directing customers to payment options outside Apple’s App Store and Google’s Play Store.
The change would allow developers to avoid mandatory in-app payment systems and potentially reduce the fees they pay to the two technology giants.
The CMA said any fees Apple and Google continue to charge for these “steering” services should be fair, reasonable and significantly lower than existing app store commissions. It expects any savings to be passed on to consumers through lower prices or reinvested into new products and services.
Steering is currently banned by Apple and restricted by Google.
Will Hayter, executive director for digital markets at the CMA, said that while it is fair for Google and Apple to be compensated for the services they provide, any fees need to be justified.
“We think it is important to give both app developers and users more choice about how they communicate and how they transact,” he added. “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.”
Alongside changes to app store payment rules, the CMA is exploring measures that would require Apple to open access to NFC technology on iPhones.
Developers have argued that Apple’s current restrictions and pricing limit their ability to build competing digital wallets and payment services. Opening NFC access could allow UK FinTechs to offer contactless payments directly from their own iOS apps, while also supporting emerging technologies such as account-to-account payments, stablecoins, digital identity services and digital car keys.
The regulator is seeking industry feedback on both the technical approach for providing NFC access and the fees Apple should be allowed to charge.
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