App payments face major regulatory scrutiny as the UK Competition and Markets Authority proposes new rules to reduce Apple and Google’s control over developer payment options.
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Payments through apps will experience a significant shake-up following the introduction of a new initiative by the Competition and Markets Authority (CMA) of the UK targeting the reduction of the duopoly exercised by Google and Apple over mobile payment solutions. This would create an opportunity for developers to direct their users towards alternative payment solutions not offered officially through app stores, leading to increased competition and lower costs for businesses and individuals. The proposed regulation follows increased interest shown globally in app store payment regulations in 2026.
The regulator believes that Google and Apple have effectively created a duopoly with almost all the smartphones in the UK operating on either of the two platforms. The new proposal seeks to provide leeway for developers to offer users alternatives in terms of payments other than using the Apple App Store or Google Play billing systems. This is being considered alongside the question of whether any charges associated with alternative payments are fair and proportionate, as Apple and Google app store competition continues to attract global regulatory attention.
CMA claimed that the changes could improve app payments competition as it would lower the mandatory platform fees and encourage innovations in the UK digital economy sector. Following the recent change in policy of Google, allowing limited external payment steering is provided that specific criteria are met. Regulators will assess whether such changes are enough to solve issues concerning competition.
This measure is part of the Digital Markets, Competition and Consumers Act, in which the regulator has gained powers over dominant technology platforms in the UK. While Apple prohibits external steering on the UK App Store, Google's policy allows it, but in accordance with specific restrictions. Should the new changes be introduced, developers would have an opportunity to earn additional money, which can be used for further investments and lowering the prices for consumers. Consumers could get more flexibility in making payment decisions.
At this point, the consultation period is open as the regulator collects information from developers, platform operators, and other industry participants on whether it is necessary to set legally binding conduct requirements. Similar measures are being undertaken in the EU, the USA, and Japan for the regulation of app store payment policies. Business Honor believes the UK's proposed reforms could reshape app payments, encouraging greater competition, lower developer costs and stronger digital innovation while increasing regulatory pressure on global platform operators.
FAQs
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Why is the UK investigating app payments?
The CMA wants to increase competition by giving developers more payment options.
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What is app payment steering?
It allows developers to direct users to external payment methods outside app stores.
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Will Apple and Google still charge fees?
Possibly, but the CMA expects any new fees to be lower than current commissions.
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Why is this important for developers?
Lower payment fees can reduce costs and improve business growth opportunities.
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Could these rules affect other countries?
Yes. Similar regulatory efforts are already underway in the EU, US and Japan.
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