UK regulator proposes app store payment steering changes

• Britain’s Competition and Markets Authority proposed allowing app developers to steer users to alternative payment options outside Apple and Google app stores.
• The move aims to cut fees and increase competition in the mobile app ecosystem.
• The CMA is also considering requiring Apple to open access to its near-field communication technology for contactless payments within iOS apps.

Britain’s competition regulator proposed allowing app developers to steer users to alternative payment options outside Apple and Google app stores to reduce fees and boost competition.

The Competition and Markets Authority said the proposals would remove restrictions that currently prevent UK developers from directing users to off-platform payment options, which are banned by Apple and restricted by Google.

The watchdog stated that any fees charged by the companies for allowing such steering would need to be fair and reasonable, and should be lower than current app store commissions, with savings passed on to consumers or reinvested in innovation.

It is also considering requiring Apple to open up access to its near-field communication technology, potentially allowing developers to offer contactless payment services within their own iOS apps.

Following the announcement shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were mixed.

Google said it has already made the changes the CMA is proposing, pointing to new Play Store terms introduced earlier this month, allowing developers to steer users to complete transactions outside the platform.

Apple did not immediately respond to a request for comment.

The proposals represent the latest effort by UK regulators to increase competition in the mobile app ecosystem dominated by Apple and Google.