Key Takeaways
- The UK Competition and Markets Authority (CMA) is considering rules that would let iOS and Android developers direct users to payment options outside the Apple App Store and Google Play Store.
- Apple argues the CMA’s proposal would be “highly intrusive,” amount to price regulation, and could stifle innovation and investment in its platform.
- The CMA maintains its intent is only to ensure fees for steering are fair and reasonable, not to set prices directly.
- Both Apple and Google were designated with strategic market status (SMS) in the UK last year, giving the CMA authority to impose competition‑opening requirements on their app stores.
- Apple reported that UK billings and sales through its App Store exceeded £46.5 billion in 2025, with commissions representing less than 3.5 % of that total.
- The CMA is reviewing stakeholder feedback before issuing a final decision; the outcome could reshape how developers monetize apps in the UK and influence similar debates elsewhere.
Apple’s Submission to the UK CMA
Apple formally submitted its feedback to the UK’s Competition and Markets Authority as the regulator evaluates a potential mandate to alter App Store rules around “steering.” Steering refers to the ability of app developers to guide users toward payment methods that bypass the platform’s own in‑app purchase system. The CMA’s consultation seeks to permit developers to include links to external payment options, a practice already allowed under the current U.S. and EU App Store frameworks but prohibited in the UK. Apple’s submission outlines its objections, warning that the proposed changes would give regulators an overly intrusive role in dictating how the company operates its business.
The CMA’s Proposed Steering Rules
According to the CMA, the objective is not to eliminate Apple’s ability to charge fees but to ensure that any fees associated with steering are “fair and reasonable” and set below existing App Store commissions. The regulator argues that allowing developers to route users to alternative payment processors would reduce costs, which could then be passed on to consumers as lower prices or reinvested into further innovation. The CMA also emphasized that developers in the UK currently lack the ability to direct customers outside the App Store, a restriction it views as anti‑competitive.
Apple’s Concerns About Price Regulation and Innovation
Apple countered that the CMA’s approach effectively amounts to price regulation because it caps the fees the company can charge for steering services. The tech giant warned that such interference would undermine its ability to invest in the App Store ecosystem, including security, privacy, and developer tools. Apple claimed there is no empirical evidence that permitting external payment links would generate savings for end‑users, suggesting instead that the move could fragment the user experience and increase fraud risk. The company also highlighted that its App Store facilitated over £46.5 billion in UK billings and sales in 2025, with commissions accounting for less than 3.5 % of that total, arguing that the existing fee structure is already modest relative to the value delivered.
The CMA’s Rebuttal
A CMA spokesperson responded to Apple’s characterization, stating that the regulator’s consultation “proposes principles to ensure that the fees Apple and Google charge for steering are fair and reasonable, not to directly set prices.” The spokesperson reiterated that the goal is to prevent anti‑competitive practices while preserving the platforms’ ability to earn a legitimate return on their services. The CMA maintains that its proposals are designed to foster competition, not to micromanage pricing decisions, and that any fee caps would be based on market‑based assessments of fairness.
Implications for Developers and Consumers
If the CMA’s steering rules are adopted, UK developers could gain the flexibility to promote alternative payment methods, potentially lowering the effective cost of distributing apps. This could enable smaller developers to price their products more competitively or allocate savings toward feature enhancements and marketing. Consumers might benefit from lower app prices or reduced subscription fees, assuming developers pass on the savings. However, Apple warns that any reduction in platform revenue could limit resources available for maintaining the App Store’s infrastructure, including rigorous app review processes and security measures that protect users from malicious software.
Broader Context: Google and Strategic Market Status
The CMA’s scrutiny extends beyond Apple; Google faces analogous considerations for its Play Store. Both companies were designated with strategic market status (SMS) in the UK last year, a classification that empowers the regulator to impose requirements aimed at opening up dominant platforms to greater competition. Under SMS, the CMA can mandate changes to business practices that hinder market entry or expansion, making the steering rule proposal a concrete application of this authority. The parallel treatment of Apple and Google underscores the regulator’s intent to address similar concerns across the two major mobile ecosystems.
Next Steps and Potential Outcomes
The CMA is currently reviewing all stakeholder feedback, including Apple’s detailed submission, before arriving at a final decision on the steering proposal. Should the regulator proceed with the rule, it will likely set a precedent for how digital marketplaces handle payment steering in other jurisdictions. Conversely, if the CMA determines that the concerns raised by Apple outweigh the anticipated competitive benefits, it may opt for a less prescriptive approach, perhaps focusing on transparency measures rather than fee restrictions. Either outcome will shape the future dynamics of app distribution, developer‑platform relationships, and consumer choice in the UK’s digital economy.