UK watchdog plans to break Apple and Google’s ‘effective duopoly’ on mobile app stores
Summary
The UK’s Competition and Markets Authority (CMA) is working to reduce Apple and Google’s control over mobile app purchases by allowing developers to direct users to pay outside their app stores. This change aims to increase competition and give users more payment options, as both companies now charge up to 30% commission on in-app purchases.Key Facts
- Apple and Google control over 90% of UK mobile devices, creating an “effective duopoly.”
- The CMA wants to let apps guide users to websites for purchases, bypassing app store fees.
- Currently, Apple and Google charge up to 30% commission on app-based payments.
- Google has already allowed steering to external payment methods on its Play Store.
- Spotify avoids Apple’s high fees by requiring subscriptions through its desktop website.
- The CMA may require Apple to open its near-field communication (NFC) technology for contactless payments in iOS apps.
- Apple warns that allowing steering could reduce user protections and increase risks like scams.
- The CMA granted Apple and Google “strategic market status” last year to enforce specific rules on their conduct.
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