The UK's competition regulator has launched a consultation that could compel Apple and Google to relax their control over how consumers pay for apps and subscriptions. The Competition and Markets Authority (CMA) announced on Tuesday that it is seeking input on new conduct requirements under the Digital Markets, Competition and Consumers Act, targeting the restrictions that currently bar developers from steering users toward cheaper payment options outside the tech giants' own platforms.
The CMA designated Apple's iOS and Google's Android as an "effective duopoly" last October, noting that between 90 and 100 percent of mobile devices in the UK run on one of these two operating systems. This market dominance, the regulator argues, stifles competition and inflates prices for consumers.
What Is 'Steering' and Why Does It Matter?
Steering refers to the practice of allowing app developers to inform customers about alternative, lower-cost payment methods that bypass the mandatory fees embedded in Apple's App Store or Google's Play Store. Currently, Apple outright prohibits steering in the UK, while Google permits it only in a limited fashion. The CMA's proposed changes would scrap these restrictions, giving developers the freedom to point users elsewhere to complete transactions.
However, Apple and Google could still levy fees for enabling steering. To prevent these charges from undermining the reform, the regulator is drawing up principles to ensure they are fair and proportionate. Under the proposed framework, the CMA expects such fees to be lower than existing app store commissions, with the savings either passed on to consumers or reinvested in developers' businesses.
The consultation comes just days after Google announced new global terms for its Play Store, which include allowing developers to steer users toward completing transactions outside the store, subject to certain conditions. Google has also adjusted the fees it charges developers, including those who use steering. The CMA said it would assess the impact of these changes during the next phase of its work on mobile platforms.
This regulatory push is part of a broader European trend. The European Union's Digital Markets Act already imposes obligations on Apple and Google to allow alternative payment systems, and similar debates are unfolding in other member states. For instance, the European Commission has fined Apple billions for anti-competitive practices related to its App Store. The UK, though no longer an EU member, remains closely aligned with these efforts through its own digital markets regime.
The CMA's consultation will run for several weeks, after which it may impose binding conduct requirements. If implemented, these rules could reshape the app economy in the UK, potentially lowering costs for millions of users and fostering innovation among developers. The regulator has emphasized that any new fees must be justified by the value Apple and Google provide, rather than their market power.
For now, the tech giants have not publicly responded to the consultation. However, both companies have historically argued that their fees support the security and reliability of their platforms. The CMA's move signals that it is prepared to challenge that narrative in the interest of competition and consumer welfare.
