The UK's Competition and Markets Authority has proposed new conduct requirements that would compel Apple and Google to permit app developers to steer customers toward payment options outside the tech giants' proprietary systems. The consultation follows the CMA's October decision to grant both companies 'strategic market status', a designation for the most dominant businesses in the mobile market that allows regulatory intervention to increase competition.
Currently, Apple bans developers from directing users to external payment methods, while Google restricts the practice in the UK. This forces developers to use the companies' payment systems and pay mandatory platform fees. The CMA argues this arrangement limits competition and keeps costs artificially high for both developers and end users.
Under the proposed measures, Apple and Google would be required to allow what regulators call 'steering', where developers can communicate directly with users about alternative payment options. Any fees the platforms charge for this steering must be 'fair and reasonable' according to the CMA's framework. Will Hayter, the CMA's executive director for digital markets, emphasized that the changes aim to introduce competitive pressure in a part of the mobile ecosystem that currently lacks it.
Google responded by stating it already allows steering for developers and has made fee changes, though these remain subject to certain restrictions. The company claimed it has already implemented the changes the CMA is proposing. Apple has been approached for comment but has not yet responded to the consultation.
The CMA expects steering fees to be lower than current app store charges, with savings either passed directly to UK customers or reinvested by developers into future innovation. This marks the third strategic market status investigation the regulator has concluded since the UK's digital markets competition regime began 18 months ago, with a fourth investigation into Microsoft's business software ecosystem currently underway.
Source: https://www.independent.co.uk/tech/apple-google-app-store-payments-cma-b3005705.html