UK Regulator Proposes Easing Apple, Google Payment Rules

Britain's competition watchdog wants to let app developers point users toward payment methods outside the Apple and Google app stores, a move that could shrink the commissions both companies collect and reshape how UK consumers pay for apps and in app purchases.

At a Glance

• The Competition and Markets Authority unveiled the proposals on June 30.
• Developers would be allowed to direct, or steer, users to payment options off the Apple App Store and Google Play.
• Any fees charged for allowing that steering must be fair, reasonable, and lower than current app store commissions.
• The CMA is also weighing whether Apple should open up its near field communication technology for use in contactless payments within third party iOS apps.
• Google says it already made similar changes to Play Store terms earlier this month.

What the CMA Is Proposing

The regulator's plan targets a longstanding complaint from app makers: that Apple bars them from telling customers about cheaper ways to pay, while Google allows it only under tight restrictions. Under the proposed rules, developers in the UK could link out to their own websites or third party payment processors instead of routing every transaction through the app stores' own systems.

The CMA said that if Apple or Google want to charge a fee for permitting this kind of steering, that fee has to be reasonable and set below what the companies currently charge in commissions. The idea is that any savings should flow back to shoppers or get reinvested into building better products, rather than simply padding the platforms' margins under a different name.

Near Field Communication Access

Alongside the payment steering proposal, the watchdog is examining whether Apple should be forced to give developers access to its NFC chip, the hardware that currently powers Apple Pay and tap to pay purchases on iPhones. Opening that technology could let other companies build their own contactless payment features directly into their apps, something Apple has kept tightly controlled.

How Apple and Google Are Responding

Google told Reuters in an emailed statement that it had already made the changes the CMA is now proposing. The company pointed to new Play Store terms introduced earlier this month that let developers steer users to complete purchases outside the platform, though those terms still come with some conditions attached. Google also cited recent adjustments to its fee structure as evidence it is ahead of the regulator's request.

Apple did not respond to a request for comment on the proposals.

The contrast between the two companies' positions is notable. Google has spent the past year loosening its grip on Play Store payments following legal and regulatory pressure in multiple markets, while Apple has generally resisted similar changes until forced by court rulings or new laws, most visibly in the European Union and in a US antitrust case brought by Epic Games.

Why This Matters for Developers and Shoppers

For app developers, the ability to steer customers to outside payment options could mean keeping a larger share of revenue that currently goes to Apple or Google as commission, often as much as 30 percent on many transactions. Smaller studios and subscription based apps, which tend to feel commission costs most acutely, stand to benefit the most if the changes go through as drafted.

For everyday users, the practical effect may be subtler at first. Prices for subscriptions or in app purchases could eventually drop if developers pass along savings, though nothing in the CMA's proposal requires that outcome. It simply removes a barrier that has kept developers from even mentioning cheaper alternatives.

Comparing the Two Platforms' Current Rules

Who This Affects Most

The proposals matter most to UK based app developers, particularly those running subscription services, games with in app purchases, or marketplaces that rely on repeat transactions. Consumers who spend heavily on apps and digital subscriptions could eventually see indirect benefits if commission savings translate into lower prices, though that outcome depends on how developers choose to respond.

Frequently Asked Questions

What is app store steering?

Steering refers to letting app developers tell users about payment options outside the app store itself, such as a website checkout, instead of forcing every purchase through Apple's or Google's built in payment systems.

Has Google already made these changes?

Google says it introduced new Play Store terms earlier this month allowing developers to steer users to outside payment methods, along with changes to its fee structure, though some restrictions still apply.

Has Apple responded to the CMA's proposal?

Apple did not immediately respond to a request for comment when the proposals were announced on June 30.

Would this lower prices for consumers?

The CMA wants savings from reduced fees passed on to consumers or reinvested in innovation, but the proposal does not guarantee that developers will lower prices as a result.

What Happens Next

The CMA's proposals are not yet final rules, and both Apple and Google are likely to weigh in during any consultation period that follows. Given Apple's history of pushing back against similar mandates in the EU and the US, the coming months will show whether London can secure the kind of concessions regulators elsewhere have only won through lengthy legal fights.