Britain’s competition regulator has proposed allowing app developers to direct users to payment options outside of Apple’s App Store and Google’s Play Store, in a bid to increase competition and reduce fees charged by both companies.
As reported ReutersThe Competition and Markets Authority (CMA) said the proposals would remove restrictions that currently prevent UK developers from directing users to off-platform payment options.
The regulator said any fees charged by Apple and Google to developers to enable such “steering” must be fair and reasonable, remain below existing App Store and Play Store fees, and allow developers to pass the savings on to consumers or reinvest them in innovation.
The CMA said it was also considering allowing Apple to open up access to its near-field communications (NFC) technology, used for Apple Pay contactless payments. This would allow developers to potentially offer alternative payment options within their own apps.
Last year, Apple was granted Strategic Market Status (SMS) in the UK for iOS and iPadOS, allowing the CMA to launch targeted interventions designed to open up the platforms to greater competition.
Apple has previously said it does not allow developers to direct users to off-platform payments. The company says this could compromise user security and fraud protection, and limit its ability to verify transactions.
An Apple spokesperson said Reuters this could open the door to “scams, bait-and-switch tactics, and circumvention of parental controls.”
“When users are moved away from Apple’s trusted payments infrastructure, they lose the protections they rely on Apple to provide,” the spokesperson said, adding that the US tech giant would continue to “clearly express our concerns” to the CMA.
In February, Apple and Google agreed to a series of changes aimed at making their app stores fairer for developers. Under terms published by the CMA, the two companies said they would ensure that apps are reviewed and ranked on their app stores in a “fair, objective and transparent” manner, without discriminating against apps that compete with their own services.
Apple needs to make it easier for developers to request access to iOS features, which could allow third-party apps to better compete with Apple’s own services.
