The British competition regulator recently proposed new regulations that would allow application developers to guide users to use other payment channels outside of the Apple App Store and Google Play Store to increase market competition and reduce the fees charged by the two major platforms to developers. According to Reuters, the UK Competition and Markets Authority (CMA) said that the new proposal would remove relevant restrictions that currently prohibit UK developers from guiding users to use off-platform payment methods.
The CMA stated that if Apple and Google charge developers fees for "guidance" activities in the future, such fees must be "fair and reasonable" and lower than the standard commission levels of the existing App Store and Play Store, allowing developers to pass on cost savings to consumers or use them for further innovation. Regulators are also considering requiring Apple to open its near field communication (NFC) technology interface. Currently, this technology is mainly used for contactless payments with Apple Pay. Once open, it will help developers provide alternative payment solutions within their own applications.
Last year, Apple was deemed to have a "strategic market position" (SMS) for iOS and iPadOS in the UK, giving the CMA the power to implement targeted intervention on relevant platforms to further open up competition. Apple has previously made it clear that it does not support allowing developers to guide users to use off-platform payment methods on the grounds that this may weaken user security and anti-fraud protection and limit Apple’s space to verify transactions.
An Apple spokesperson told Reuters that such a change could open the door to "fraud, incentivized charges, and bypassing of parental controls." "When users are steered away from Apple's trusted payments infrastructure, they lose the protections they rely on Apple for," the spokesperson said, stressing that the company would continue to "clearly express our concerns" to the CMA.
In February this year, Apple and Google agreed to implement a series of measures in the UK to improve the app store environment and enhance fairness for developers. According to the terms announced by the CMA, the two companies pledged to ensure that the review and ranking process of apps in their stores is "fair, objective and transparent" and will not discriminate against apps because they compete with their own services. At the same time, Apple must allow developers to more easily apply for access to iOS functions and interfaces so that third-party applications can better compete with Apple's own services.