Key Takeaways

- The UK CMA is consulting on rules that would force Apple and Google to let developers direct customers to third-party payment options
- Google claims it has already implemented the proposed changes, with new fee structures taking effect June 30
- The regulator is also examining Apple's NFC access restrictions, with decisions expected later this year
Britain's Competition and Markets Authority wants to force Apple and Google to let app developers tell customers about cheaper ways to pay outside their app stores. The regulator opened a consultation on June 30, arguing that current restrictions prevent UK developers from steering users toward direct payment options that avoid the standard 30% commission.
Apple currently prohibits the practice entirely in the UK. Google restricts it. Both companies have Strategic Market Status designations from the CMA, which gives the regulator broad powers over their mobile businesses.
What exactly is the CMA proposing?
The core proposal concerns "steering," which means allowing developers to inform customers that they can buy subscriptions or in-app purchases directly from the developer's website at a lower price. Right now, if you subscribe to Spotify or buy game currency through an iOS app, Apple takes up to 30%. The developer cannot tell you within the app that you could pay less elsewhere.
The CMA does not expect Apple or Google to drop fees entirely when developers use steering. But it does expect any fees for steered transactions to be lower than the full app store commission. Will Hayter, Executive Director for Digital Markets at the CMA, put it bluntly: "While it is only fair for Apple and Google to be compensated for the services they provide, any fees they charge must be justified through a robust, evidence-led framework involving due reference to both cost and value."
Savings from lower fees could go to customers as price cuts or get reinvested into developer businesses, the regulator suggested.
Google says it already complied
Google responded quickly, claiming it has already made the changes the CMA is proposing. A spokesperson told The Register: "We have already made the changes that the CMA is proposing today." The company pointed to its updated fee structure, with new rates taking effect June 30.
Google says the changes will reduce costs for many developers. The CMA has not confirmed whether Google's adjustments go far enough to satisfy the proposed requirements.
Apple did not respond to requests for comment.
NFC access is also on the table
The steering consultation is not the only pressure Apple faces from UK regulators. The CMA is separately examining near-field communication access on iPhones. Apple currently restricts third-party access to the NFC chip, which limits competition in mobile payments. The regulator is considering requirements that would force Apple to open NFC to developers, addressing what it calls "high fees and strict terms."
Responses on NFC are due by July 21. Steering consultation responses close July 28. The CMA expects to decide whether to impose new requirements later this year.
The bigger regulatory picture
These consultations follow a pattern of tightening scrutiny. In June, the CMA imposed rules on Google Search requiring better transparency around search rankings and new publishing rules for AI overviews. Both Apple and Google also made commitments about how their app stores operate.
The Strategic Market Status designation gives the CMA teeth that previous UK regulators lacked. Unlike general competition law, SMS status allows the regulator to impose requirements proactively, not just react to complaints.
Microsoft and AWS have also attracted CMA attention, suggesting the regulator plans to exercise its powers broadly across major tech platforms.
Logicity's Take
This matters most for subscription-heavy apps and games with in-app purchases. A developer paying 30% on a £10/month subscription loses £3 to Apple or Google. If steering fees drop to, say, 12% (as some EU precedents suggest), that £1.80 difference per subscriber adds up fast. For a bootstrapped SaaS with 10,000 UK subscribers, that is £18,000 annually back in the business. The real question is whether Apple will fight this harder than Google. Apple's services revenue depends heavily on App Store commissions, while Google's mobile income is more advertising-driven. Expect Apple to challenge any requirements aggressively, potentially delaying implementation well beyond any initial deadline.
What developers should watch for
The consultation deadline is July 28, 2026. If you operate an app with significant UK revenue from in-app purchases, submitting a response could shape the final rules. The CMA explicitly asked for evidence on what fee levels would be reasonable.
Even if you do not submit, prepare for changes. Any new requirements will likely take effect in late 2026 or early 2027. That means updating payment flows, testing alternative checkout experiences, and possibly renegotiating with payment processors.
Frequently Asked Questions
What is app store steering?
Steering means developers can inform customers within an app that they can make purchases directly from the developer's website, typically at a lower price because it avoids app store commissions.
How much do Apple and Google charge developers?
Both typically charge 30% on in-app purchases and subscriptions. Small developers earning under $1 million annually pay a reduced 15% rate.
When will the UK CMA make a decision on steering requirements?
The consultation closes July 28, 2026. The CMA expects to decide whether to impose new requirements later in the year.
Does this affect developers outside the UK?
The requirements would apply specifically to the UK market. However, similar regulations in the EU have already forced some changes, and UK rules could influence other jurisdictions.
For context on how regulatory and market shifts affect tech business models globally
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Source: www.theregister.com
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
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