UK Watchdog Secures App Store Reforms From Apple and Google

Britain’s Competition and Markets Authority said on Tuesday that the commitments mark a significant early milestone under its strengthened digital markets framework. According to Reuters, the regulator had previously designated both companies as holding “strategic market status” in the smartphone sector, granting it enhanced authority to require reforms that promote competition.

Apple’s App Store and Google’s Play Store serve as the primary gateways for distributing apps on devices powered by iOS and Android, which together account for nearly the entire UK smartphone market. Per Reuters, thousands of businesses depend on these platforms to review and publish their applications, and many developers have voiced concerns about inconsistent or opaque decision-making processes.

Under the newly agreed measures, the companies will ensure that app rankings and review systems function fairly and that developers’ data is properly protected, according to Reuters. The commitments also provide developers with expanded access to certain iOS features, enabling them to build rival offerings in areas such as digital wallets and live translation services.

However, the agreement does not address what many developers see as the most contentious issue: the commission fees charged on app sales, subscriptions and in-app purchases. According to Reuters, the CMA previously identified commission rates — which can reach up to 30% — as a “key concern” in July.

The regulator said it continues to prioritize the ability of developers to direct users toward alternative payment methods, though it indicated that any action in this area would need to take into account developments in other jurisdictions. Per Reuters, discussions with both companies on this issue are ongoing.

Read more: European Commission Says Apple Maps and Ads Fall Outside EU Gatekeeper Rules

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Rather than imposing formal remedies, the CMA opted to negotiate commitments directly with the companies. CMA Chief Executive Sarah Cardell said this approach “reflected the unique flexibility of the UK digital markets competition regime” and delivered quicker results for consumers and businesses.

“These are important first steps while we continue to work on a broad range of additional measures to improve Apple and Google’s app store services in the UK,” she said.

The UK’s strategy contrasts with action taken elsewhere in Europe. According to Reuters, the European Union fined Apple 500 million euros ($595 million) in April over technical and commercial restrictions tied to its App Store. Apple subsequently proposed adjustments to its rules and fee structures in response.

In a statement, Apple said it “appreciated the positive and ongoing dialogue” with the British regulator.

“The commitments announced today allow Apple to continue advancing important privacy and security innovations for users and great opportunities for developers,” the company said.

Google also welcomed the outcome, while maintaining confidence in its current practices.

“We are deeply committed to providing a platform where developers can thrive and users can explore with confidence,” a spokesperson said, adding that the company believed its developer policies were already fair, objective and transparent.

Source: Reuters