UK regulator proposes opening Apple, Google app stores to alternative payment systems

Britain's competition regulator on Tuesday proposed allowing app developers to direct users to alternative payment options outside Apple and Alphabet-owned Google's app stores, a move aimed at reducing fees and boosting competition.

The Competition and Markets Authority (CMA) said the proposals would remove restrictions that currently prevent UK developers from directing users to off-platform payment options. Apple currently prohibits such practices, while Google places restrictions on them.

The watchdog added that any fees charged by the two technology companies for allowing developers to steer users to external payment methods should be fair and reasonable, and lower than the commissions currently levied through their app stores. It said any resulting savings should either be passed on to consumers or reinvested in innovation.

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"While it is only fair for Apple and Google to be compensated for the services they provide, any fees they charge must be justified through a robust, evidence-led framework involving due reference to both cost and value," Will Hayter, Executive Director for Digital Markets at the CMA, is expected to say later on Tuesday, according to excerpts of his prepared remarks.

New Payment Rules Under Review

The CMA also said it is considering requiring Apple to open up access to its Near Field Communication (NFC) technology, which is used for contactless payments. The move could allow developers to offer payment services directly within their iOS apps.

According to the regulator, the proposal could enable UK fintech companies to develop alternatives to Apple Wallet, including account-to-account payment services and support for emerging payment technologies such as digital currencies.

Google said it has updated its Play Store policies to allow developers to redirect users to complete purchases through external payment options. The regulator will assess these changes before deciding later this year whether additional measures are required.

Apple, meanwhile, reiterated its opposition to allowing developers to direct users to third-party payment platforms, arguing that doing so could weaken security safeguards, increase the risk of fraud, and reduce protections such as transaction verification and parental controls.