UK regulator considers opening Apple, Google app stores to rival payments

By Sam Tabahriti

LONDON, June 30 (Reuters) - Britain's ‌competition regulator on Tuesday ​proposed ​allowing app developers to steer users to alternative payment options outside Apple and Alphabet's Google app stores to cut fees and boost competition.

The Competition and Markets Authority said the proposals ‌would remove restrictions that currently prevent UK developers from directing users to off-platform payment ⁠options, which are banned by Apple and restricted by Google.

The watchdog said any fees charged by two of the world's largest technology ‌companies for allowing such "steering" would need ‌to be fair and reasonable, and should be lower than current app store commissions, with savings passed on to consumers or reinvested in 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," Will Hayter, executive director for digital markets, ⁠is expected to say later on Tuesday according to an excerpt of his speech.

PAYMENT RULES UNDER REVIEW

The CMA said it was also considering requiring ​Apple to open up access to its near-field communication technology, which is used for contactless payments, potentially allowing developers to offer payment services within their own iOS ​apps.

This could enable UK fintech companies to build alternatives to ‌Apple's wallet, including account-to-account payments and emerging technologies such as digital currencies, the CMA said.

The proposals are part of a consultation under Britain's new digital markets regime, which ⁠gives the watchdog powers to impose tailored requirements on companies with so-called "strategic market status".

Google said in an emailed statement it had already taken steps in that direction, pointing to new Play Store terms introduced earlier this month allowing developers to ⁠steer users to complete transactions outside the platform.

Apple did not immediately respond to a request for comment.

The CMA said it ​would assess Google's recent changes as part of its work before deciding later this year whether to impose formal requirements.

The regulator designated Apple and Google as having strategic market status in mobile ecosystems last year, giving it the power to ‌intervene more directly to boost competition.

In February, it secured commitments from the two companies to make their app stores fairer and more transparent, including changes to rankings, ‌reviews and access to certain features – but they did not address commissions, which can reach up to 30%.

The CMA said ⁠at the time that enabling developers to ‌steer users to alternative payment methods ​remained a priority, an issue that has also drawn scrutiny from regulators in the European Union, the United States and Japan.

(Reporting by Sam Tabahriti; Editing by Sarah Young and ‌Emelia Sithole-Matarise)

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