CMA will change App Store payment rules

• The regulator is considering allowing developers to direct users to payment options outside Apple’s and Google’s built-in systems.
• CMA believes current commissions may be higher than the new fees, and the difference should benefit consumers or businesses.
• Separately, access to NFC technology for contactless payments in iOS apps is being considered.

The UK competition regulator, the CMA, has launched a consultation on changes to payment rules at Apple and Google. The proposal would allow developers to direct users to third-party payment methods outside app stores.

The authority believes that current restrictions force developers to pay mandatory commissions that can reach 30%. The regulator expects the new terms to reduce costs for developers and help lower prices for users in the United Kingdom.

The CMA notes that any fees for such redirection must be fair, reasonable and lower than the current app store commissions. According to the authority’s representative Will Hayter, part of the savings should be passed on to customers or invested in business development.

The regulator is also considering the possibility of requiring Apple to open access to near-field communication technology, which is used for contactless payments. This could allow developers to offer their own payment services in iOS apps.

Apple opposes such changes and says they could weaken user protection, open the door to fraud and bypass parental controls. Google, for its part, said it has already made some of the changes pointed to by the CMA, although they still have limitations.

The regulator’s current steps are linked to a decision made in October last year, when Apple and Google were given strategic market status in the mobile market. This gave the CMA the power to set separate conduct rules for them.

Tags: Europe/Economy/Technology