The UK Competition & Markets Authority (CMA) is advancing proposals to reduce restrictions imposed by Apple and Google on mobile app developers, focusing on payment processing and near field communication (NFC) access within their digital markets framework.
- Consultation to allow app developers to 'steer' users away from platform payment systems.
- Proposed fees for steering must be fair, reasonable, and lower than current app store charges.
- Potential new requirements to open NFC access for UK developers on iOS devices.
Market signal
The CMA's consultation signals a shift toward fostering more competitive conditions in the UK mobile app ecosystem by addressing Apple’s and Google’s restrictive payment practices. By targeting the steering ban, the proposed rules would enable developers to promote alternative payment methods, potentially reducing the platforms’ dominant gatekeeper role in mobile transactions.
Unlocking NFC functionality on iOS is another notable market indicator that software and fintech developers could soon innovate with contactless payments and digital credentials without being encumbered by platform limitations. This reflects regulatory intent to stimulate next-generation payment and identity technologies within the UK.
Operator impact
App developers in the UK would gain enhanced flexibility to communicate with users about off-platform payment choices, enabling reduced dependence on Apple’s and Google’s in-app commissions. Developers may be able to present lower-cost payment options, supporting better margins or reinvestment in product innovation.
For Apple and Google, the new requirements would impose controls on the fees they can charge for steering-related services. The CMA expects these fees to be justified, fair, and lower than the current app store charges, potentially reducing revenue derived from mandatory fees. Additionally, Apple could face technical and commercial pressures to provide NFC access to third-party apps, opening new integration opportunities for developers.
What to watch next
The CMA’s consultation outcomes will be critical to follow, including the responses from Apple, Google, and UK developers, as well as the detailed framework around fee setting and technical NFC access methods. Developers’ input on pricing and implementation will help shape the regulatory approach.
Further, operators and buyers should monitor how these regulatory changes influence mobile payment infrastructures, competitive positioning among app stores, and the rollout of innovative payment and digital ID solutions in the UK market. Extensions of similar rules in other jurisdictions could also emerge depending on UK precedent.