UK moves to end Apple and Google app store steering bans
The UK's Competition and Markets Authority is consulting on new conduct rules for Apple and Google that would allow app developers to steer users to off-platform payment methods and access NFC technology. These proposed changes aim to foster competition and reduce mandatory payment processing fees within the mobile app ecosystem.
Key Takeaways
- Proposed rules would end Apple's ban and Google's restrictions on developers communicating off-platform payment options to UK users.
- The CMA expects steering fees charged by platforms to be lower than current commission rates and justified by cost and value.
- NFC access requirements would allow UK fintechs to support digital wallets, digital IDs, and car keys within their own iOS apps.
- The consultation period for NFC requirements closes on July 21, 2026, while the steering consultation ends July 28, 2026.
Why It Matters
This regulatory push threatens the lucrative 'walled garden' commission model that has long defined mobile app monetization. By demanding access to NFC hardware and lower steering fees, the CMA is moving to commoditize core platform features that currently serve as competitive moats for Apple and Google. For the streaming industry, this could significantly lower customer acquisition costs by enabling direct billing outside of App Store and Play Store ecosystems. Watch for the final decision later this year, which will set the benchmark for fair value in platform service fees.
Additional Context
The CMA's action aligns the UK with aggressive global regulatory trends, notably mirroring the European Union's Digital Markets Act (DMA). In June 2024, the European Commission informed Apple of preliminary findings that its App Store rules breached the DMA by preventing developers from freely steering consumers to alternative offer channels. Per TechPolicy Press (June 2024), Apple faced scrutiny over its 'Core Technology Fee,' a €0.50 charge per install that regulators suspected fell short of DMA compliance requirements. This followed a record-breaking €1.8 billion fine issued by the EU in March 2024 specifically regarding anticompetitive steering restrictions for music streaming providers. On the hardware front, Apple has already moved to settle similar disputes in other jurisdictions to avoid massive fines. In July 2024, the European Commission accepted a 10-year legally binding commitment from Apple to open its NFC chip technology to third-party mobile wallet providers at no cost within the European Economic Area (EEA). Per Finextra (July 2024), this agreement allows rival payment services to utilize 'Host Card Emulation' to provide a 'tap-and-go' experience equivalent to Apple Pay. The CMA's new consultation indicates that the UK intends to secure similar or broader access for British developers following the country's formal designation of Apple and Google as having 'Strategic Market Status' in October 2025. Google has also been adjusting its global terms in anticipation of these shifts. In June 2026, Google announced updated global Play Store terms intended to allow steering in several markets. However, the CMA noted that it will rigorously assess whether these updates provide sufficient competition or if more stringent 'conduct requirements' are necessary under the UK's new Digital Markets, Competition and Consumers Act, according to official UK government notices.
Read full article at businesscloud.co.uk
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