The UK’s competition authority unveiled a series of proposals on Tuesday that could significantly alter how Apple and Google’s app stores function within the country. The focus of these measures is to reduce the commissions charged by these tech giants and increase competition in the digital landscape.
### Changes in Payment Methods
According to the Competition and Markets Authority (CMA) proposals, app developers may soon have the right to direct users to alternative payment methods beyond the official Apple App Store and Google Play Store platforms. Currently, such practices are either restricted or banned, limiting the commercial options available to developers. The British authority argues that these “steering restrictions” stifle competition and maintain high commission rates, adversely affecting both developers and end-users.
### Reducing Commissions
The CMA has stated that any fees Apple and Google might impose for allowing redirections to external payment systems should be “fair and reasonable,” and considerably lower than the existing commissions in the App Store and Play Store. Additionally, the authority emphasizes that any cost savings should benefit consumers or be reinvested in digital innovation.
### NFC Technology Access
Another crucial aspect under review by the UK authority is the possibility of mandating Apple to open its NFC (Near Field Communication) technology. This change could enable developers to integrate contactless payment services directly into iOS applications, without relying solely on Apple Pay.
Google has indicated that it has already implemented some of these proposed changes, mentioning recent updates to its Play Store terms that allow user redirection to external payments under certain conditions. The company also notes that it has adjusted its commission structure. Meanwhile, Apple has not provided an official comment at the time of the announcement.
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