UK Regulators Target Apple’s App Store Grip With New Third-Party Payment Mandates
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The CMA’s Gambit Against the ‘Apple Tax’
The United Kingdom is intensifying its regulatory assault on the closed ecosystems of mobile giants, with the Competition and Markets Authority (CMA) proposing a series of mandates that could fundamentally alter how developers monetize software on the iPhone. At the heart of the dispute is the so-called ‘Apple Tax’—the commission Apple collects on in-app purchases—and the company’s long-standing prohibition against ‘steering’ users toward cheaper, external payment methods.
According to a report from Reuters, the CMA has launched a formal consultation under the country’s new digital markets regime. The goal is clear: dismantle the barriers that prevent developers from directing users to third-party payment systems, effectively bypassing Apple’s proprietary billing engine. While Google has historically allowed some leeway in this regard (albeit with significant restrictions), Apple has maintained a rigid wall, often threatening to remove apps that attempt to link users to external websites for subscriptions or digital goods.
Opening the NFC Gate
Beyond the App Store’s commission structure, the CMA is eyeing a more technical target: the iPhone’s Near Field Communication (NFC) chip. For years, Apple has restricted access to this hardware, ensuring that Apple Pay remains the primary, and often only, seamless contactless payment option on the device. This has left UK fintech firms and traditional banks in a precarious position, unable to offer a truly native competing experience.
The current proposals suggest that if these rules are adopted, Apple may be forced to grant broader access to its contactless technology. This would allow rivals to build independent payment wallets that function with the same frictionless ‘tap-and-go’ utility as Apple Pay. For the UK’s thriving fintech sector, this represents a massive shift in the competitive landscape, potentially breaking the vertical integration that has allowed Apple to capture both the hardware and the transaction layer of mobile commerce.
A Global Pattern of Regulatory Pressure
The UK is not acting in a vacuum. These proposals mirror the aggressive stance taken by the European Union under the Digital Markets Act (DMA), which has already forced Apple to allow alternative app marketplaces and third-party billing in the EU. However, the UK’s approach via the CMA allows for a more nuanced, sector-specific application of rules that can be adjusted based on the local market’s needs.
For developers, the implications are financial. By allowing external payment links, the CMA aims to reduce the overhead costs for app creators, who currently surrender up to 30% of their revenue to Apple. This could lead to lower subscription costs for consumers or higher margins for the startups building the software. Apple, conversely, will likely argue that these measures compromise the security and privacy of the iOS ecosystem, claiming that third-party payment processors introduce vulnerabilities and a degraded user experience.
The consultation process is currently ongoing, meaning these changes are not yet law. However, the CMA has shown a growing appetite for intervention in the digital economy, signaling that the era of ‘walled gardens’ may be coming to a close in the British market.
