UK regulator proposes allowing third party payment options for mobile app stores
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British regulators are considering a proposal that would allow developers to bypass standard fees by using external payment systems. The move could provide more affordable in-app purchase options and competition for established mobile payment services.
Amalgamated from The Register (opens in new tab), 9to5Mac (opens in new tab), Yahoo Finance (opens in new tab)
British antitrust regulators are considering a proposal that would require Apple and Google to permit app developers to utilize third party payment systems for in-app purchases and subscriptions. According to The Register, these changes could create more affordable routes for consumers by bypassing the standard commission fees currently charged by both companies.
Reports from 9to5Mac indicate that the proposal specifically focuses on allowing developers to include links to external payment options within their applications. This would provide a mechanism for developers to utilize systems that compete with integrated services like Apple Pay in the UK market.
Yahoo Finance reports that the regulator is considering these measures to open the ecosystem to rival payments. The move follows scrutiny into how mobile platform owners manage and profit from digital transactions. According to The Register, the ability to bypass standard fee structures would allow for more diverse payment options, which could potentially lower costs for users purchasing content outside of established payment gateways.
Why this matters
If implemented, these changes could significantly impact the economic model of mobile app stores by reducing the commission revenue of Apple and Google. It also addresses broader questions regarding competition in digital markets and whether 'walled garden' ecosystems provide sufficient choice for consumers and developers alike.
What's confirmed / what isn't
Several sources confirm that the UK regulator is considering proposals to allow third-party payment links. The specific impact on consumer pricing and the exact timeline for implementation are not yet confirmed.
Background
Apple and Google currently charge a commission on all transactions made through their respective app stores, typically ranging between 15% and 30%.