The UK’s Competition and Markets Authority (CMA) is proposing measures to dismantle what it describes as a significant duopoly held by Apple and Google over mobile app platforms. The regulator aims to empower developers by enabling them to offer alternative payment options to users, circumventing the traditional app store routes.
Currently, app developers face restrictions that limit competition, as Apple and Google impose commissions of up to 30% on certain in-app transactions. The CMA argues that these limitations prevent developers from providing cheaper or diverse purchasing methods to consumers. By introducing “steering,” developers would gain more autonomy, potentially increasing competition within the mobile app market where Apple and Google dominate the platforms used by the majority of UK smartphone users.
Some companies, such as Spotify, have already bypassed app store payments due to the high commission fees by redirecting their customers to their websites. The CMA believes that removing these barriers could enhance choice for both businesses and consumers. Additionally, the watchdog is evaluating whether Apple should offer wider access to its near-field communication technology, which could enable developers to create alternative contactless payment solutions on iPhones.
Apple, however, has raised concerns that these proposed changes might compromise user protections, including security features, privacy controls, and measures against fraud. Google, on the other hand, stated it has already implemented some changes that allow developers to direct users to external payment options.
This initiative by the CMA follows its classification of Apple and Google as having strategic market status, granting the regulator more authority to enforce specific rules on their business operations.