● Covered by 1 source · 1 reportMedium impact1 negative
UK Parliamentarian Criticizes Apple and Google's 'App Tax' and Market Control
Key points
- Apple and Google charge up to 30% commission on in-app purchases.
- Developers are prohibited from informing users about cheaper external purchase options.
- UK consumers pay an estimated £700 million annually due to these commissions.
- The Competition and Markets Authority (CMA) has identified market control issues.
The 'App Tax' Mechanism
Chi Onwurah, Chair of the UK parliamentary science, innovation and technology committee, highlighted the 'app tax' imposed by Apple and Google. Both companies control the primary app stores, charging up to a 30% commission on in-app purchases, subscriptions, and software sales. Developers have no alternative platforms for mobile app distribution, forcing them to accept these terms.
Restrictions on Developers
A key concern is the 'anti-steering' policy, which prevents developers from informing users about cheaper purchasing options outside the app stores. This restriction is enforced to protect Apple and Google's profits. Onwurah states that this impacts small British developers, potentially hindering their ability to hire staff, invest in new products, or grow their businesses within the UK.
Consumer Financial Impact
Research cited by the Coalition for App Fairness suggests that UK consumers pay approximately £700 million annually to Apple and Google due to these commissions. This amount is significantly higher than the combined UK corporation tax paid by both companies last year. This cost is integrated into product prices, making it invisible to consumers, and is attributed to market control rather than earned value.
Regulatory Scrutiny
Onwurah, drawing on her background at Ofcom, emphasized the importance of competition for consumer choice. She noted that the Competition and Markets Authority (CMA) has already identified issues regarding Apple and Google's market control, indicating ongoing regulatory attention to these practices.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
Chi Onwurah, Chair of the UK parliamentary science, innovation and technology committee, criticized Apple and Google's app store commissions, calling them an 'app tax'. She argues that the 30% commission and 'anti-steering' rules stifle competition, harm developers, and cost UK consumers approximately £700 million annually.