UK regulator targets Apple, Google grip on app payments
The UK’s competition regulator has launched a formal push to force Apple and Google to allow cheaper payment alternatives, adding regulatory momentum to a global battle that directly shapes costs for European developers.
Britain's Competition and Markets Authority (CMA) is consulting on new conduct requirements for Apple and Google. The regulator wants to end restrictions that prevent app developers from directing UK customers towards cheaper payment options outside the tech giants' own systems.
The practice is known as steering. Currently, Apple bans developers from telling users about cheaper ways to pay in the UK, while Google permits it only in a limited capacity. Scrapping these restrictions would let developers freely point users to alternative payment processors that bypass the mandatory fees baked into the App Store and Google Play.
However, the CMA recognises that Apple and Google might simply introduce new charges for allowing steering. To prevent this from undermining the policy, the regulator is drafting principles to ensure any new fees are meaningfully lower than existing app store charges. The CMA expects the financial savings to either reduce prices for consumers or be reinvested into developers' businesses.
This intervention stems from the CMA's decision last October to designate Apple and Google's mobile ecosystems an "effective duopoly". The regulator noted that between 90% and 100% of UK mobile devices run on their platforms, giving the companies immense control over digital commerce.
For European markets and investors, the UK's move signals deepening transatlantic alignment on tech regulation. App store terms and steering practices remain under active regulatory scrutiny in the EU, the United States, and Japan. European developers operating across borders stand to benefit significantly from a cascading regulatory effect, where antitrust pressure in one major jurisdiction forces operational changes that often roll out globally.
The timing of the UK consultation is notable, arriving just days after Google announced new global terms for its Play Store. Google's updated policy now allows developers to steer users to external transactions, subject to certain conditions, and alters the fees charged to developers who use this option. The CMA said it will assess the impact of these Google changes during the next phase of its work.
Under the Digital Markets, Competition and Consumers Act, the regulator must complete this consultation before it can legally impose any binding conduct requirements on the two companies.
