UK CMA targets Apple and Google’s app store duopoly with new regulations

Regulatory Intervention Against Duopoly

The UK's Competition and Markets Authority (CMA) has initiated a challenge against Apple and Google, which dominate mobile platforms, holding over 90% market share in the UK. The CMA's measures focus on enabling developers to guide users away from these app stores for purchases, which is seen as a step towards improving market competition.

Steering Users to Alternative Payments

Currently, Apple and Google enforce strict rules that prevent apps from directing users to external websites for transactions. By removing these constraints, the CMA believes more choices will be available for users and apps alike. This is expected to shift the financial burden of in-app purchases from users back to developers, as both companies currently impose fees that can reach as high as 30%.

Response from Industry Stakeholders

The Coalition for App Fairness, which includes notable companies like Spotify, has raised concerns regarding the proposal to charge fees for steering users. They argue that any such fees should be accompanied by clear justification based on transparent data from Apple and Google about their operational costs.

Potential Implications for Payments

In addition to allowing steering, the CMA is contemplating whether Apple should open access to its near-field communication technology. This change could further empower developers to offer alternative payment solutions, potentially transforming the mobile payment landscape. Google has already begun adjusting its fees related to steering users outside its Play Store as a response to this regulatory pressure.