The UK’s Competition and Markets Authority (CMA) has unveiled proposals aimed at increasing competition in the mobile app market by allowing developers to direct customers to alternative payment methods outside Apple’s App Store and Google’s Play Store.
The regulator said the measures are intended to give consumers more choice while reducing costs for app developers, many of whom have long complained about the commissions charged on in-app purchases. The CMA estimates that more than 90% of smartphones in the UK run on either Apple’s iOS or Google’s Android operating systems, describing the two companies as an “effective duopoly” in the mobile ecosystem.
A central part of the proposal focuses on what is known as “steering.” Under the new rules, app developers would be allowed to guide users to external websites where they can subscribe to services or make purchases directly instead of completing transactions through the app stores.
Currently, both Apple and Google charge commissions of up to 30% on many in-app purchases and subscriptions. Developers argue these fees increase costs for businesses and consumers while limiting payment options.
The CMA pointed to music streaming platform Spotify as an example of the issue. The company does not allow UK users to purchase subscriptions through Apple’s App Store because of the commission fees. Instead, customers must visit Spotify’s website to complete the purchase, a process the regulator believes creates unnecessary obstacles.
Will Hayter, Executive Director at the CMA, said the proposals are designed to introduce greater competition into the mobile marketplace by giving both developers and consumers more flexibility over how payments are made.
The regulator said Apple and Google would still be permitted to charge fees for developers using steering options, provided those charges are fair and proportionate.
Google responded by saying it has already introduced changes allowing developers to direct users to alternative payment methods outside the Play Store. The company also recently introduced a revised fee structure covering external payment options.
Alongside payment reforms, the CMA is considering requiring Apple to provide broader access to its near-field communication (NFC) technology, which powers contactless payments on iPhones. Such a move could allow third-party developers to create their own tap-to-pay services instead of relying solely on Apple Pay. Financial technology company Curve has already announced plans to develop an alternative digital wallet using expanded NFC access.
The proposals build on the CMA’s decision last year to designate Apple and Google as companies with strategic market status, giving the regulator greater authority to impose conduct rules on both firms.
Apple opposed the proposed changes, arguing that directing users outside its payment system could weaken consumer protections, increase fraud risks and reduce the effectiveness of parental controls. The company said it would continue discussions with the regulator as the consultation process moves forward.
