The UK’s Competition and Markets Authority (CMA) is consulting on new rules that could disrupt the dominance of Apple and Google in app payments. This move aims to lower costs for consumers and foster innovation within the tech sector. Currently, app developers face restrictions that prevent them from directing users to cheaper payment methods outside of the companies’ platforms.
Known as ‘steering’, this practice allows developers to inform customers about alternative payment options that bypass the hefty fees associated with Apple’s App Store and Google’s Play Store. The CMA’s proposal seeks to eliminate these restrictions, potentially enabling developers to offer more competitive pricing.
However, while Apple currently prohibits steering, Google has recently announced changes that permit limited steering under certain conditions. The CMA will evaluate these adjustments as part of its ongoing assessment of mobile platforms. The regulator is also working on guidelines to ensure that any fees charged for steering are fair and lower than existing app store charges.
This consultation is part of a broader regulatory effort, as app store practices are under scrutiny globally, including in the EU and the US. The outcome could significantly impact how UK consumers pay for apps, potentially leading to lower prices and increased choices in the market.
Source: Euronews
