The UK’s competition authority is moving to curb what it calls an “effective duopoly” over mobile app platforms held by Apple and Google. The Competition and Markets Authority (CMA) is advocating for changes that would enable app developers to direct consumers toward alternative payment options beyond the app stores. This initiative aims to enhance competition, as current restrictions hinder developers from offering users potentially cheaper or varied purchasing methods.
Currently, Apple and Google levy commissions of up to 30% on some in-app purchases, a practice that has led some companies, such as Spotify, to bypass app store payments by redirecting customers to their websites. By removing these barriers, the CMA believes it could foster more business and consumer choices, granting developers greater control and possibly boosting competition within the mobile app market, where Apple and Google’s platforms dominate among UK smartphone users.
Additionally, the CMA is assessing whether Apple should allow broader access to its near-field communication technology. Such a move could enable developers to offer alternative contactless payment solutions on iPhones. However, Apple has raised concerns that these proposed changes might compromise user protections, including vital security features, privacy controls, and scam prevention mechanisms. In contrast, Google has noted that it has already implemented some modifications permitting developers to guide users to external payment platforms.
The CMA’s actions come after it designated both Apple and Google as holding strategic market status. This classification grants the regulator increased power to enforce specific regulations on the companies’ operational practices. By challenging the current app store dynamics, the CMA hopes to introduce more competitive practices, potentially leading to improved options for consumers and developers alike.