Dean Porter
Britain's competition watchdog wants to let app developers point users toward cheaper ways to pay, bypassing the payment systems built into Apple and Google's app stores. The Competition and Markets Authority laid out proposals on Tuesday that would strip away rules currently stopping UK developers from directing customers to outside payment options, a practice Apple bans outright and Google restricts.
At a Glance
- The CMA wants to let developers steer users to payment options outside Apple's App Store and Google Play.
- Any fees charged for allowing this steering must be fair, reasonable and lower than existing app store commissions.
- Regulators are also weighing whether Apple should open up its near field communication technology for contactless payments in other apps.
- Google says it already rolled out similar changes to Play Store terms earlier this month.
- Apple had not responded to requests for comment at the time the proposals were announced.
What the CMA Is Actually Proposing
At the heart of this plan is a simple idea: developers should be able to tell customers, right there in the app, that they can pay less by going elsewhere. Right now, that kind of messaging is either forbidden or heavily restricted, which has long frustrated app makers who feel locked into paying commissions of up to 30 percent on transactions.
The regulator says that if companies do charge a fee for allowing this steering, that fee needs to be reasonable and, crucially, smaller than what developers currently hand over through standard app store commissions. The CMA wants those savings to actually reach consumers, either through lower prices or through developers plowing the money back into building better products.
Contactless Payments Could Get More Competition Too
Beyond steering, the CMA is looking at something that could shake up mobile payments more broadly: forcing Apple to give developers access to the iPhone's near field communication chip. That's the technology behind tap to pay. Right now, Apple keeps a tight grip on it, largely reserving it for Apple Pay. Opening it up would let other companies build their own contactless payment features directly into their iOS apps, something Apple has resisted for years across multiple markets.
How the Two Tech Giants Are Responding
Google didn't wait long to weigh in. In an emailed statement, the company said it had already made the very changes the CMA is now proposing. It pointed to updated Play Store terms rolled out earlier this month that let developers direct users to complete purchases outside the platform, though those changes come with some conditions attached. Google also noted it has adjusted its fee structure alongside the policy shift.
Apple, for its part, stayed quiet. The company did not immediately respond to a request for comment when the proposals were announced, leaving open the question of how it plans to react to a rule that would touch one of its more tightly controlled revenue streams.
Why This Matters for Developers and Shoppers
App store commissions have been a sore point in the tech industry for years, fueling lawsuits and regulatory battles from Brussels to Washington. For smaller developers especially, a cut of up to 30 percent on every transaction can make the difference between a sustainable business and a struggling one. If steering becomes easier and cheaper, that could translate into lower prices for the apps and subscriptions people buy every day, or at least more money flowing back into the products themselves rather than into app store coffers.
Frequently Asked Questions
What does app steering actually mean?
Steering refers to a developer's ability to tell users, inside an app, that they can pay for something through a website or payment method outside the app store, often at a lower cost.
Why does Apple restrict access to its NFC chip?
Apple has historically limited near field communication access to protect Apple Pay's role in contactless transactions on iPhones, though regulators in the UK and elsewhere have pushed back on that approach.
Has Google already made these changes?
Google says yes. The company points to new Play Store terms introduced earlier this month that allow developers to direct users to outside payment options, along with adjustments to its fee structure.
Will these changes lower prices for consumers?
The CMA's stated goal is for any savings from reduced fees to reach consumers or be reinvested in app improvements, though actual pricing decisions remain up to individual developers and companies.
What Comes Next
These are proposals, not final rules, so there's a consultation process ahead before anything becomes binding. Apple's silence so far leaves plenty of uncertainty about how hard the company might push back, especially given its history of resisting similar mandates in the European Union and elsewhere. Google's cooperative tone suggests it sees an opportunity to get ahead of the regulation rather than fight it.
Eugene Castillo
Douglas Turner