The Competition and Markets Authority (CMA) is consulting on forcing Apple and Google to allow app developers to steer customers away from the tech giants' platforms for payment. Currently, Apple bans this practice and Google restricts it in the UK, leading developers to pay mandatory fees set by the platforms.
Proposed Measures to Allow Steering
The CMA proposes measures to allow steering and ensure fees charged by Apple and Google for this are fair and reasonable. The regulator expects steering fees to be lower than current app store charges, with savings passed on to UK customers or invested back into developers' businesses.
Strategic Market Status
This move follows the CMA's decision last October to grant Apple and Google strategic market status for their dominance in the mobile market. This designation allows the regulator to intervene to increase competition, benefiting consumers and businesses.
Speaking at the Informa Connect CompLaw conference, Will Hayter, the CMA's executive director for digital markets, stated: "We are consulting today on draft conduct requirements to support so-called 'steering', or the ability for app developers to engage directly with their users outside Apple and Google's app stores. We think it is important to give both app developers and users more choice about how they communicate and how they transact."
Responses from Apple and Google
Google insisted it already allows steering for developers and has made changes to fees, albeit subject to certain restrictions. The tech giant said: "We have already made the changes that the CMA is proposing today."
Apple raised concerns that the steering plans would open the door to scams. An Apple spokesperson said: "Through the App Store, we strive to ensure that apps are safe, transactions are secure and users are protected. Steering requirements undermine that foundation, opening the door to scams, bait-and-switch tactics and the circumvention of parental controls."
Further Changes to Contactless Payments
The CMA is also considering changes to allow UK fintechs and developers to support contactless transactions from within their own iOS apps. Apple already permits authorised developers to offer NFC contactless transactions using the secure element, separate from Apple Pay and Apple Wallet.
Broader Context
The CMA has concluded three strategic market status investigations and launched a fourth into Microsoft's business software ecosystem since the UK's digital markets competition regime started 18 months ago. Hayter added: "In many cases, the market takes enough care of both companies and people – such is the power of competition to give people a choice of innovative products and services at reasonable prices, and to give companies with great ideas the chance to succeed. But sometimes that simply doesn't work in practice. If companies don't do right by consumers, we may have to step in."
