UK regulator weighs steering conduct fees for Apple and Google platforms
The UK Competition and Markets Authority (CMA) is currently consulting on steering conduct requirements for Apple and Google’s mobile platforms. A report from S&W Group argues that regulators should prioritize market-opening remedies and transparency rather than direct fee interventions to avoid undermining ecosystem innovation.
Key Takeaways
- CMA consultation explores principles to ensure steering fees are lower than current 15-30% app store commission rates.
- Proposed framework evaluates platform value across security, developer tools, and fraud prevention rather than just payment processing costs.
- Regulators may prioritize market-opening remedies and transparency disclosures before resorting to direct fee interventions.
- The Digital Markets, Competition and Consumers Act provides a flexible toolkit to adjust conduct requirements based on real-time market evidence.
Why It Matters
The CMA’s shift toward regulating 'steering fees' marks a transition from identifying market dominance to designing specific pricing remedies for mobile ecosystems. For streaming services, this could lower the cost of off-platform customer acquisition if regulators successfully decouple distribution value from transaction processing. However, direct fee intervention risks turning dynamic digital platforms into static utilities, potentially slowing the rollout of new developer tools or security features. Success hinges on whether the CMA can establish a 'fair and reasonable' benchmark without undermining platform investment incentives. Watch for the final decision later this year to see if the CMA adopts a cost-based or value-based fee calculation model.
Additional Context
The UK's current regulatory push follows the October 2025 designation of Apple and Google as having 'Strategic Market Status' (SMS) under the Digital Markets, Competition and Consumers Act (DMCCA). This designation allowed for an initial wave of voluntary commitments that took effect in April 2026. Per Broadfield Law, the June 2026 consultation represents the first time the CMA has proposed bespoke conduct requirements specifically targeting mobile platform 'steering'—the practice of developers directing users to external payment sites. The regulator has suggested that steering fees should be lower than existing charges to ensure savings are passed to UK consumers or reinvested in innovation.
While the UK pursues a principles-based approach, the European Union has already taken aggressive enforcement action under its Digital Markets Act. In July 2026, the European Commission fined Google €430 million for app store steering practices that restricted developers from freely promoting cheaper offers, per the European Commission. The EU's findings emphasized that while platforms can charge for initial customer acquisition, the current level and duration of steering fees exceed what is considered compliant. Apple DMA case closure and Google have both contested these findings, arguing that such mandates require them to dismantle safety protections and real-time search features.
Simultaneously, the CMA is expanding its use of DMCCA powers across the broader digital economy. In August 2026, Lewis Silkin reported that the regulator is investigating subscription transparency and pricing before the formal 'subscription contracts' regime officially begins in 2027. This broader enforcement landscape suggests that streaming providers will face increased scrutiny not just on their app store distribution costs, but also on how they communicate renewal pricing and cancellation terms to UK-based users.
Read full article at swgroup.com
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