The UK’s Competition and Markets Authority (CMA) proposed new rules on Tuesday requiring Apple and Google to permit alternative in-app payment systems. This move targets the 15% to 30% commissions the tech giants currently charge on transactions. The regulator stated the goal is to boost competition and innovation by providing developers and users more choice.
The proposal includes a potential requirement for Apple to open its iPhone near-field communication (NFC) chip to third-party providers. This action would enable fintech firms and banks to offer contactless payment solutions directly within their own iOS apps. The move aligns with a global trend of increased antitrust scrutiny on major technology platforms.
Apple argues the proposed changes would undermine App Store consumer protections and circumvent parental controls. The CMA’s proposal is now open for consultation. If enacted, the rules could fundamentally alter mobile app economics and impact sentiment for large-cap tech ETFs.