UK Regulator Proposes Easing Apple (AAPL), Google App Store Rules
1 min read
The UK Competition and Markets Authority (CMA) has proposed rules that would let app developers direct users toward payment methods outside the Apple (AAPL) App Store and Google Play, a move aimed squarely at the commissions both platforms charge on in-app purchases. The proposal, published Tuesday, targets what regulators see as artificial restrictions on how developers can transact with their own customers.
At a Glance
CMA proposes allowing UK developers to steer users to off-platform payment options
Any fees for enabling this steering must be fair, reasonable, and lower than current app store commissions
Regulator is also weighing mandatory NFC access on iOS for third-party contactless payment apps
Google says it already updated Play Store terms and fee structure earlier this month
Apple had not responded to requests for comment at the time of the CMA announcement
A customer taps a smartphone against a contactless payment terminal in a shop.antapp antitrust ruling, Apple App Store fees, Google Play Store policy
What the CMA Is Actually Proposing
The core of the proposal addresses
the practice developers call anti steeringwhere Apple has historically prohibited apps from even mentioning cheaper payment alternatives available on a developer's own websiteand Google has imposed comparable though less absolute restrictions. Under the CMA's planUK developers would gain the right to point users toward external payment rails without facing removal from either store or punitive enforcement.</p><p>Cruciallythe regulator isn't proposing a free-for-all. Apple and Google would still be permitted to charge a fee for facilitating this steeringsince both companies argue their platforms provide distributionsecurity reviewand infrastructure that has real cost. But the CMA is drawing a specific line: any such fee has to be fair and reasonableand it must come in below what developers currently pay in standard app store commissionswhich have historically sat at 30 percent for most transactions and 15 percent for smaller developers under existing reduced-rate programs. The expectation is that savings get passed to consumers or plowed back into product development rather than absorbed as pure margin.</p><h3>The NFC Question</h3><p>A separate but related piece of the proposal concerns near-field communication technology on iOS. Apple currently reserves NFC access for its own Apple Pay systemwhich is the mechanism that has kept third-party contactless payment apps off iPhones in any meaningful way. The CMA is considering forcing Apple to open that hardware layer to competing developerswhich would let banksfintechsand other payment providers build contactless functionality directly into their own apps rather than routing everything through Apple's wallet.</p>
[[image: smartphone contactless payment terminal]]
<p>This would mark a bigger structural shift than the steering rules alone. Payment steering affects how transactions get initiated and pricedbut NFC access affects who controls the checkout experience at the point of sale entirely. If adoptedit would put the UK in similar territory to the European Unionwhich has already forced some NFC access changes on Apple under the Digital Markets Act.</p><h2>How Apple and Google Are Responding</h2><p>Google's reaction was fast andnotablyframed as compliance rather than resistance. The company said in a statement that it has already made the changes the CMA is calling forpointing to updated Play Store terms rolled out earlier this month that let developers steer users to complete purchases outside the platformsubject to certain conditionsalongside adjustments to its commission structure. Google's positioning suggests it sees limited additional cost in accommodating the CMA's directionlikely because it had already been adapting Play Store policy in response to regulatory pressure elsewhereincluding in the United States following its antitrust loss to Epic Games.</p><p>Appleby contrastdid not immediately respond to requests for comment when the proposal was published. That silence is consistent with Apple's historical posture on steering rules generallyit has resisted similar mandates in the US market and the EUoften complying only after court orders or fines rather than getting ahead of regulatory action. Apple's business model relies more heavily on services revenueincluding App Store commissionsthan Google's doeswhich gives it a stronger financial incentive to slow-walk changes that could erode that revenue stream.</p><h2>Why the Distinction Between the Two Companies Matters</h2><p>The differing responses point to a structural difference in how exposed each company is. Google's Android ecosystem has always permitted some degree of app sideloading and alternative app storeswhich meant Play Store commissions were never quite as ironclad as Apple's closed iOS model. Appleby comparisonhas built a tightly controlled distribution funnel where the App Store is effectively the only sanctioned way to install software on an iPhonewhich is precisely why steering restrictions and NFC access have become such central regulatory flashpoints specifically for Apple rather than Google.</p><table><thead><tr><th>Issue</th><th>Apple's Current Policy</th><th>Google's Current Policy</th></tr></thead><tbody><tr><td>Steering to external payments</td><td>Banned</td><td>Restrictedrecently loosened</td></tr><tr><td>NFC/contactless access for third parties</td><td>Not permitted</td><td>Generally more open on Android</td></tr><tr><td>Standard commission rate</td><td>Up to 30 percent</td><td>Up to 30 percentwith reductions</td></tr><tr><td>Response to CMA proposal</td><td>No immediate comment</td><td>Says changes already made</td></tr></tbody></table><h2>What This Means for Developers and Consumers</h2><p>For developers operating in the UKthe practical upside of steering reform is straightforward: lower effective transaction costs if they route payments through their own systems rather than in-app purchase mechanismsassuming the platform fee for steering itself stays meaningfully below the standard commission. Subscription-heavy businessesparticularly media and content apps that have long complained about the 30 percent cut on digital goodsstand to benefit most directly since their margins are most sensitive to commission rates.</p><p>Consumers may see modest price effects if developers pass savings throughthough the CMA's framing leaves room for reinvestment in the business insteadmeaning lower prices aren't guaranteed. The NFC proposalif it moves forwardwould matter more for payment app competition than for pricing directlyopening the door to alternative wallets and contactless services on iPhones that currently have no path to compete with Apple Pay's hardware access.</p><h2>Frequently Asked Questions</h2><h3>What is app store steering?</h3><p>Steering refers to a developer directing userswithin an app or via linksto complete a purchase using a payment method outside the app store's own in-app purchase systemtypically to avoid the store's commission.</p><h3>Has Apple actually banned steering in the UK?</h3><p>Yesunder Apple's current App Store rulesdevelopers have not been permitted to direct UK users to alternative payment options outside the platformwhich is the specific restriction the CMA's proposal targets.</p><h3>What commission rates are developers currently paying?</h3><p>Standard App Store and Play Store commissions have generally run as high as 30 percent on transactionswith reduced rates around 15 percent available to smaller developers under existing programs from both companies.</p><h3>Would this proposal apply outside the UK?</h3><p>The CMA's proposal is specific to the UK market and its jurisdictionthough similar steering and NFC access rules have already been imposed on Apple in the European Union under separate regulation.</p><h2>What Comes Next</h2><p>The CMA's proposal is not yet finaland both companies will have the opportunity to respond formally before any rules take effect. Given Apple's pattern of contesting comparable mandates in other jurisdictionsexpect a period of negotiation or possible legal pushback before UK developers see concrete changes to how they can direct users toward payment. Google's early alignment suggests it plans to treat this as a formality rather than a fightbut Apple's silence so far leaves the more consequential questionparticularly around NFC accessstill very much open.</p>
