The UK’s Competition and Markets Authority (CMA) proposed new rules on Tuesday. These regulations require Google and Apple to allow app developers to direct users to alternative payment options outside official app stores.
The CMA intends to boost competition and reduce costs for developers. The move could potentially lower prices for consumers. This proposal lifts current bans on steering customers to external websites for purchases and subscriptions.
The CMA stipulated that any fees for these transactions must be fair and lower than current commission rates. This consultation is part of the UK’s digital markets regime for firms with strategic market status. The watchdog now holds greater power to regulate these companies.
Google stated it has already implemented the proposed changes. Apple warned that the changes could undermine user security and circumvent parental controls. The CMA will make a final decision later this year after a consultation period.