Lagos, Nigeria (VOICE OF NAIJA)- BRITAIN’s competition regulator has proposed new rules that would allow app developers to direct users to alternative payment methods outside the app stores operated by Apple and Google, a move aimed at reducing commissions, strengthening competition and lowering costs for consumers.
The proposal by the UK’s Competition and Markets Authority (CMA) forms part of wider efforts to curb the market power of major technology companies and create a more competitive digital marketplace.
If adopted, the reforms would remove restrictions that currently prevent developers from steering customers to external payment platforms. Apple prohibits such practices, while Google permits them only under limited conditions.
Under the proposed framework, any fees charged by Apple or Google for allowing developers to use alternative payment channels must be fair, reasonable and significantly lower than the commissions currently imposed through their app stores.
The CMA said the reforms are designed to ensure that any savings generated are either passed on to consumers through lower prices or reinvested by developers to improve products, services and innovation.
“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,” said Will Hayter, Executive Director for Digital Markets at the CMA.
READ ALSO: CBN-Licensed Fintech To Strengthen Cashless Payment Systems
The proposals address one of the most contentious issues in the global app economy—the mandatory use of in-app payment systems, which require developers to pay commissions on digital purchases made through Apple’s App Store and Google’s Play Store.
Allowing developers to promote alternative payment options could reduce transaction costs, improve profit margins and give consumers greater choice in how they pay for digital goods and services.
The regulator has also explored measures requiring Apple to open access to the iPhone’s Near Field Communication (NFC) technology, which powers contactless payments. Such a move would allow UK financial technology firms to develop competing digital wallet applications for iOS devices, potentially increasing competition in the mobile payments market.
Google, however, said recent changes to the Play Store already provide developers with greater flexibility to direct users to alternative payment methods, suggesting that some of the CMA’s objectives have already been addressed.
Industry analysts say the proposed reforms could have significant implications for app developers, particularly fintech firms, streaming services, gaming companies and digital content providers, by lowering the cost of app distribution and payment processing.
For consumers, the changes could translate into lower prices, more payment options and faster innovation as developers retain a larger share of revenue to invest in improving their products and services.
The proposals reflect a broader global regulatory trend, with authorities in Europe, the United States, Japan and other jurisdictions increasingly challenging the dominance of major digital platforms and seeking to create more competitive app marketplace ecosystems.
