London: Britain's competition regulator has proposed major changes to the way Apple and Google operate their app stores, aiming to give developers more freedom over how they charge customers and reduce the fees they pay to the two technology giants. The move is part of the United Kingdom's wider effort to create a fairer and more competitive digital marketplace while giving consumers greater choice.
The Competition and Markets Authority, known as the CMA, announced on Monday that it is considering new rules that would allow app developers to direct users to payment options outside Apple's App Store and Google's Play Store. This would let developers avoid relying solely on the payment systems controlled by the two companies, which currently collect commissions on many digital purchases made through their platforms.
The proposal would require Apple and Google to allow developers to inform customers about alternative ways to pay for digital services and subscriptions. If the companies continue to charge developers for using outside payment methods, those fees would have to be fair, reasonable and lower than the commissions currently charged through their app stores.
The regulator believes that these changes could lower costs for developers, encourage innovation and eventually benefit consumers through lower prices or improved digital services. It said the savings created by reduced fees should either be passed on to customers or invested in making apps better.
The CMA is also looking at whether Apple should be required to open access to the Near Field Communication technology used in iPhones for contactless payments. This would allow banks, financial technology companies and other developers to build their own tap to pay services directly into their applications without relying entirely on Apple's own systems.
The latest proposals form part of the regulator's wider powers under Britain's new digital competition rules, which were introduced to address the dominance of large technology companies. Earlier this year, the CMA identified both Apple and Google as companies with strategic market status, allowing the regulator to introduce measures aimed at increasing competition in digital markets.
Google said it has already taken several steps that match many of the regulator's goals. The company pointed to recent changes in its Play Store policies that allow developers to guide users toward alternative payment methods in certain situations. Google also said it has adjusted parts of its fee structure and will continue working with regulators to improve the experience for developers and consumers.
Apple did not immediately respond to the latest proposals. However, the company has consistently argued in previous regulatory discussions that its App Store rules are designed to protect users by maintaining high standards of security, privacy and reliability. Apple has warned that weakening its control over payment systems could expose customers to greater security risks and reduce the overall quality of the user experience.
The proposals come as governments and regulators around the world continue to increase pressure on large technology companies over their control of digital marketplaces. The European Union has already introduced sweeping changes through its Digital Markets Act, requiring Apple to make significant adjustments to its App Store policies, including allowing alternative app marketplaces and payment methods. European regulators have also imposed substantial penalties over competition related issues.
Similar action has also been seen in countries including Brazil, Japan and South Korea, where regulators have introduced or proposed rules aimed at increasing competition in mobile app ecosystems and reducing the influence of dominant platform operators.
For app developers, the changes being considered in the United Kingdom could reduce operating costs and provide greater flexibility in how they sell digital products and subscriptions. Many developers have argued for years that the commissions charged by Apple and Google, which can reach up to 30 percent on certain transactions, are too high and limit competition.
The CMA has opened consultations on both the payment proposals and access to Apple's contactless payment technology. Developers, consumer groups and the technology companies will now have the opportunity to provide feedback before the regulator decides whether to make the proposals legally binding.
If approved, the new measures would represent one of the most significant reforms of Britain's mobile app market and could further increase pressure on Apple and Google to change their business practices in other parts of the world. The outcome will be closely watched by developers, consumers and regulators as governments continue to reshape competition in the global digital economy.