The competition regulator in the United Kingdom is trying to change how mobile payments work. On Tuesday, the Competition and Markets Authority shared a new proposal that targets the fees charged by big technology companies. The government watchdog wants to give app developers the freedom to point users toward outside payment options, which could ultimately save money for normal people who buy digital goods.
The regulator wants developers to guide users to cheaper payments
Under the current rules, app makers have a hard time using alternative billing systems. The UK watchdog wants to lift the restrictions that stop developers from offering off-platform payment methods. If the proposal moves forward, developers will be allowed to steer customers away from the standard App Store billing system to find better deals.
The regulator stated that any fees charged by a company for allowing this kind of steering must be fair and reasonable. These new fees must stay lower than the standard commission rates. The government expects developers to take those savings and either lower prices for customers or put the money back into building better products. While Google claims it already made these exact changes to its own store, the new guidelines would force all major platforms to follow the same standard.
Apple warns that the new changes could expose users to more scams
The government proposal also looks at another major feature on mobile devices. The regulator is considering a rule that would force Apple to open up access to its near-field communication technology. This is the system used for contactless payments. Giving developers access to this tool could allow them to build their own digital wallets that work directly inside their apps.
Apple is not happy with the proposed rules. A spokesperson for the company told reporters that it strongly opposes letting developers direct users to outside payments. It believes this move could undermine user security and make it harder to verify transactions.
The company warned that moving away from its trusted payment infrastructure could open the door to scams, bait-and-switch tactics, and issues with parental controls. The tech giant plans to continue sharing its concerns with the UK regulator.
