Britain’s Competition and Markets Authority (CMA) has proposed allowing app developers to direct users to alternative payment methods outside Apple’s App Store and Google Play, aiming to reduce fees and increase competition in the UK’s digital app marketplace.
The regulator said the proposals would remove restrictions that currently prevent UK app developers from steering customers towards off-platform payment options, which are prohibited by Apple and subject to limitations on Google’s app marketplace.
Under the proposals, any fees charged by Apple or Google for allowing developers to use alternative payment systems would need to be fair, reasonable and significantly lower than existing app store commission rates.
The CMA said any savings generated through lower payment processing fees should either be passed on to consumers through lower prices or reinvested by developers into new products, services and innovation.
The regulator also stressed that while Apple and Google should receive appropriate compensation for the services they provide, any charges must be supported by transparent, evidence-based assessments of both costs and value.
As part of the consultation, the CMA is also considering requiring Apple to open access to its near-field communication (NFC) technology, which powers contactless payments on iPhones.
Opening NFC access could allow UK fintech companies to develop alternative digital wallets, account-to-account payment systems and future payment technologies, including digital currencies, directly within iOS applications.
The proposals form part of the UK’s new digital markets regime, which gives the Competition and Markets Authority greater powers to impose tailored rules on technology companies designated as having Strategic Market Status.
Google said it has already taken steps in this direction by introducing updated Google Play policies earlier this month that allow developers to direct users to complete purchases outside its app store.
The CMA said it will assess Google’s recent policy changes before deciding later this year whether additional regulatory requirements are necessary.
Apple has continued to oppose allowing developers to promote external payment methods, arguing that processing payments outside the App Store could weaken security protections, increase fraud risks and reduce its ability to verify transactions.
An Apple spokesperson said loosening the existing rules could expose users to scams, misleading payment practices and attempts to bypass parental controls designed to protect younger users.
