Apple opposes UK proposal for App Store payment rule changes, citing price regulation concerns

Apple's Stance on UK Proposal

Apple has formally responded to a consultation by the UK's Competition and Markets Authority (CMA), expressing strong opposition to proposed rules that would mandate allowing app developers to link to alternative payment options outside the App Store. The company argues that these regulations would constitute price regulation and could negatively impact innovation and investment within its ecosystem.

CMA's Regulatory Framework

The CMA gained the authority to impose such requirements after designating Apple and Google as having "strategic market status" in their respective mobile platform markets last year. This designation, under the UK’s new digital markets regime, enables the regulator to introduce company-specific rules aimed at promoting competition and offering consumers more choices.

Proposed Fee Structure and Disagreement

Under the CMA's proposal, Apple and Google would still be permitted to charge developers a commission on purchases made through alternative payment methods, but this fee would need to be considered "fair and reasonable." The CMA anticipates these "steering fees" would be lower than current App Store charges, with savings potentially passed to UK customers or reinvested by developers. However, Apple contends that the proposal goes beyond promoting competition, giving the regulator an "intrusive" role in managing its business and regulating its prices and services.

CMA Rejects Apple's Characterization

The CMA has rejected Apple's characterization of the proposal as direct price regulation. The authority clarified that its intention is to establish principles for determining what constitutes fair and reasonable steering fees, rather than directly setting those fees itself. This ongoing dialogue highlights a significant regulatory challenge to Apple's App Store policies in the UK.