The UK’s competition watchdog is aiming to dismantle the “effective duopoly” created by Apple and Google in the mobile app platform market. The Competition and Markets Authority (CMA) has proposed measures that would enable app developers to guide users toward alternative payment methods outside of app stores, potentially altering the landscape of mobile app transactions.
Currently, both Apple and Google impose restrictions that limit competition by preventing app developers from proposing more affordable or varied purchase methods to customers. The tech giants charge up to 30% commission on certain in-app purchases, a practice that has prompted some companies, like Spotify, to circumvent app store payments by directing customers to their websites instead.
The CMA argues that permitting developers to “steer” users could provide them with greater autonomy and foster competition within the mobile app market, where Apple and Google maintain dominant positions. The regulator believes removing these barriers could enhance choices available to both consumers and businesses.
In addition to payment options, the CMA is considering whether Apple should offer broader access to its near-field communication (NFC) technology. This change could empower developers to create alternative contactless payment solutions for iPhones, potentially diversifying the payment landscape further.
Apple has expressed concerns that such changes might compromise user protections, including privacy controls, security features, and anti-scam safeguards. Meanwhile, Google has noted that it has already implemented some modifications that allow developers to direct users to external payment methods. This initiative by the CMA comes after it designated Apple and Google as having strategic market status, a move that grants the regulator more authority to enforce specific regulations on these companies’ business practices.