UK tech giants Apple and Google face potential upheaval as the Competition and Markets Authority (CMA) proposes new conduct requirements aimed at boosting innovation within the sector. The proposed rules, outlined in a consultation launched yesterday, could see app developers "steer" customers away from proprietary payment systems, leading to lower costs for consumers or increased investment in UK tech businesses.
The CMA's proposals centre on allowing app developers to inform users about alternative payment options outside of Apple and Google's App Stores. Currently, the platforms prohibit developers from promoting such alternatives, while imposing significant fees that could be reduced under the new rules. According to the consultation, these new "steering" fees would be substantially lower than current charges, potentially providing a boost to UK businesses.
The CMA is also addressing concerns over Apple's restrictions on Near Field Communication (NFC) functionality, which have previously limited developers' ability to access this technology due to high fees and strict terms. The regulatory body proposes introducing requirements that would grant third-party developers access to NFC on iOS devices, unlocking significant innovation and competition in the process.
UK fintech companies and other developers could benefit from the proposed change, enabling them to support contactless transactions directly within their own iOS applications. Such a move is expected to pave the way for future payment methods like account-to-account transfers, digital currencies, and even non-financial uses like digital IDs. The CMA is seeking feedback on two specific design elements related to NFC access: the technical method by which it should be provided, and the pricing structure.
With this consultation marking a significant step in the UK's digital markets competition regime, the CMA remains committed to ensuring that companies operate fairly, stepping in when market dynamics do not.