UK Watchdog Challenges Apple and Google Over App Store Rules

The UK’s competition watchdog is taking new steps to challenge the power of Apple and Google in the mobile app market. The Competition and Markets Authority (CMA) argues that these two companies hold an “effective duopoly”—a situation where only two companies control almost the entire market. According to the CMA, at least 90% of mobile devices in the UK run on software created by these two tech giants. This control allows them to set rules that the regulator believes are unfair to both app developers and consumers.

At the heart of the issue is the practice of “steering.” This means allowing apps to guide users to websites where they can pay for services outside of the official Apple or Google app stores. Currently, both companies charge a commission—a fee paid for a service—of up to 30% on purchases made inside their apps. Because of these high costs, some companies, such as Spotify, do not allow users to buy subscriptions directly through the app. Instead, customers must go to a website to complete the purchase. The CMA wants to lift these restrictions so that developers can avoid these mandatory fees, which the regulator says will create more competition in the mobile market.

Will Hayter, the CMA executive director for digital markets, explained that giving users more choice is essential. He noted that the current lack of competition in the mobile ecosystem is a major problem. By allowing developers to steer users toward alternative payment methods, the CMA hopes to force Apple and Google to lower their prices. While the regulator suggests that Apple and Google could still charge a fee for allowing this, it insists that any such charges must be fair and based on clear data. However, the Coalition for App Fairness, which represents companies like Spotify and Match Group, has criticized the idea of allowing these companies to charge any fee at all without clear evidence of their costs.

Apple has strongly opposed these changes. An Apple spokesperson stated that these rules undermine protections for users and could make it easier for scams to happen. The company argues that when users are directed away from Apple’s trusted payment systems, they lose the security that the company provides. Apple also expressed concerns that these changes could make it harder for parents to control what their children buy or do on their devices.

This move by the UK regulator follows a decision last October to give Apple and Google “strategic market status.” This status allows the CMA to set specific rules for these companies to ensure they do not abuse their dominant position. Google has already made some changes to its system, including allowing apps to steer users to other payment methods, though it has also introduced new fees for this service.

While the UK is working to change these rules, the fight over app store fees is also happening in the United States. According to Ars Technica, Apple has taken a legal battle with Epic Games to the Supreme Court. The case involves a court order that required Apple to allow developers to include links to outside payment methods. Apple initially tried to charge a 27% commission on these outside payments, which led to a legal finding of contempt—a situation where a person or company is punished for failing to follow a court order. Apple is now asking the Supreme Court to decide if a court can punish a company for violating the “spirit” of an order, rather than just the specific words written in it.

As the CMA continues its work in the UK and the Supreme Court prepares to hear Apple’s arguments, the future of the mobile app market remains uncertain. For now, developers and consumers are waiting to see if these efforts will truly lead to lower prices and more freedom. The outcome will likely change how millions of people use their phones and buy digital services every day.