UK Regulator Takes Aim at Tech Giants' Core Practices

The UK's Competition and Markets Authority (CMA) has launched a public consultation on a new set of rules targeting Apple and Google's mobile ecosystems. The proposed measures strike at the heart of their business models: the closed payment systems within app stores and exclusive control over key hardware features like NFC.

Dismantling the Payment Walled Garden

Under the draft plans, Apple and Google would be prohibited from restricting UK-based app developers. Developers would gain the freedom to direct users to their own websites or alternative platforms to complete in-app purchases, subscriptions, and other transactions.

The CMA's objectives are clear:

  • Boost Competition: Create more choice for users and developers regarding payment processors.
  • Reduce Lock-in: Lessen developers' forced reliance on Apple and Google's proprietary payment systems.
  • Manage Costs: The CMA explicitly states that any fees platforms charge for processing these "out-of-app" transactions must be "fair and reasonable," and are expected to be significantly lower than the current 15-30% standard app store commission.

Pushing for NFC Access

Beyond payments, the regulator is also seeking input on compelling Apple to open access to the Near Field Communication (NFC) chip in iPhones. This includes consulting on the technical implementation and any potential fee structure.

Currently, Apple restricts NFC use primarily to its own Apple Pay service, a key advantage for its mobile wallet. Mandating open access would allow banks, rival payment services, and transit apps to utilize the hardware directly, potentially sparking innovation in mobile payments, access control, and public transit.

A Strategic Move in Broader Digital Regulation

This consultation is not a standalone action. It forms a key part of the CMA's wider regulatory programme for Apple and Google's mobile platforms under the UK's Digital Markets Competition regime. The authority is deploying a combination of rules to systematically address what it sees as competition distortions stemming from their market power.

The public consultation period is now open, and the final rules may be adjusted based on feedback. Regardless of the outcome, this move signals the UK's proactive and concrete approach to tech antitrust, positioning it as a jurisdiction whose actions will be closely watched worldwide.