UK CMA Proposals for External Payments and NFC
The EU required Apple to permit third-party app stores, while a US court ruled that developers have the right to direct iPhone users to third-party payment platforms for app purchases and subscriptions. Britainβs Competition and Markets Authority (CMA) is now proposing to apply this latter rule in the UK.
The U.K.βs competition regulator has proposed letting app developers direct users to payment options outside Appleβs App Store and Googleβs Play Store, in a move aimed at increasing competition and reducing the fees charged by the two companies.
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The regulator said any fees Apple and Google charge developers for enabling such βsteeringβ must be fair and reasonable, remain below existing App Store and Play Store commissions, and allow developers to either pass savings on to consumers or reinvest them in innovation.
Requiring Apple to allow apps to steer users to the web to make payments is, Iβve long argued, sensible regulation. Iβve also long argued that Apple has been obstinate in disallowing it. If in-app paymentsβββthrough Appleβs systemβββcanβt compete with out-of-app payments on the web, something is wrong with IAP. But itβs wrong to assume that payments outside IAP will result in lower prices and better policies for users.
They may increase prices when costs grow but that does not mean they do the opposite. But who cares? Lower costs permit more flexibility on pricing and, even if that money ends up in the pockets of developers instead of Apple, is that supposed to be a bad thing? Is there a reason why someone should be upset that they might pay the same amount but an indie developer gets to keep more of it?
The proposed policies are pretty straightforward from what I can see. Among other obligations, Apple is not allowed to use or require scare tactics when users are routed to an external payment mechanism and, while it is allowed to charge a steering fee, it is not allowed to count services not used by developers offering third-payments nor double-count for services already accounted for by other developer fees. Also, the CMA calls bullshit on Appleβs claim that third-party payments are particularly risky[β¦]
Previously:
- Apple Asks Supreme Court to Review Epic Ruling
- UK CMA Secures App Store Committments
- Brazil Recommends Sanctions for Apple Over App Store and NFC Rules
- UK CMA vs. Appleβs Browser Rules
- iPhone NFC Access Outside EU
Update (2026-07-30): Juli Clover:
Apple said new UK App Store rules would give regulators a βhighly intrusiveβ role dictating how it runs its business, reports Reuters. Apple submitted feedback to the UKβs Competition and Markets Authority as it considers forcing Apple to change its App Store rules around steering.
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UK regulators said Apple can charge developers a fee, but it must be fair and reasonable, and below existing App Store commissions, so developers can pass savings to customers or reinvest them in innovation.
According to Apple, the CMAβs proposed rules would undermine innovation and investment, and would amount to price regulation because of the restriction on fees.