UK regulator targets Apple and Google

The UK’s Competition and Markets Authority (CMA) has unveiled proposals that could significantly reshape the mobile payments landscape by requiring Apple and Google to give app developers greater freedom to direct users towards alternative payment methods outside their respective app stores.

UK regulator targets Apple and Google

If implemented, the measures would weaken one of the technology giants’ most closely guarded revenue streams, while creating new opportunities for payment providers, fintechs and merchants seeking to reduce transaction costs and offer greater payment choice to consumers.

The proposals form part of the CMA’s wider programme to increase competition in digital markets and reduce the influence of dominant platform operators.

Opening the Door to Alternative Payments

At the centre of the consultation is the practice known as “steering”, whereby app developers would be permitted to inform customers about alternative payment options beyond Apple’s App Store and Google Play.

Under current policies, Apple prohibits developers from directing users to external payment methods, while Google imposes more limited restrictions. Developers using in-app purchases are typically required to pay commissions to the platform operators.

The CMA believes greater payment choice would introduce much-needed competitive pressure into the mobile app ecosystem. It has proposed that any fees associated with steering should be fair, reasonable and lower than existing app store commissions, allowing developers either to reduce prices for consumers or reinvest savings into their businesses.

Will Hayter, Executive Director for Digital Markets at the CMA, said the regulator wanted both developers and consumers to have greater choice over how they communicate and complete transactions.

Fintech Innovation Could Benefit

Alongside payment steering, the CMA is also examining Apple’s control over Near Field Communication (NFC) technology within iPhones.

The regulator says wider NFC access could enable UK fintech companies and software developers to build new contactless payment services directly into iOS applications, reducing reliance on Apple Wallet and supporting a broader range of payment options.

Potential use cases extend beyond traditional card payments to include account-to-account transfers, digital currencies, stablecoins, digital identity services and digital car keys.

The proposals could therefore have implications that reach well beyond app store commissions, potentially encouraging greater innovation across the UK’s digital payments ecosystem.

Global Regulatory Pressure Continues to Mount

The UK consultation reflects a broader international effort to increase competition within mobile app marketplaces.

Apple and Google have both faced regulatory scrutiny over their app store practices in the European Union, the United States, India and other jurisdictions. While Google argues it has already introduced greater flexibility through revised Play Store policies, Apple maintains that restricting external payment routes protects consumers from fraud, scams and weaker security standards.

Apple also argues that its integrated payment infrastructure helps safeguard users through parental controls, purchase protections and trusted payment processing.

The outcome of the CMA consultation is therefore likely to be watched closely by regulators and technology companies worldwide. Should the proposals proceed, they could not only reshape the economics of app distribution in the UK but also accelerate innovation in digital payments by allowing fintech providers and merchants to compete more directly for consumer transactions.