Britain’s antitrust regulator has proposed forcing Apple to allow developers to link to third-party payment options to purchase apps and subscriptions outside of the App Store.
The proposal would specifically ban Apple from using the same forms of “malicious compliance” it has tried in both the US and EU …
The story so far in the EU and US
The EU required Apple to permit third-party app stores, while a US court ruled that developers have the right to direct iPhone users to third-party payment platforms for app purchases and subscriptions. Britain’s Competition and Markets Authority (CMA) is now proposing to apply this latter rule in the UK.
However, Apple has so far sought to circumvent these requirements with tactics described as “malicious compliance.” In the EU, Apple used “irritating and scary” screens intended to deter iPhone owners from using competing app stores. In the US, the company insisted it had the right to charge commissions even on purchases made outside the App Store. The net impact of these commissions would negate any benefit for developers.
UK app payment proposals
The UK’s CMA now proposes to allow developers to steer users to alternative payment options outside of both Apple and Google app stores. Google has said it is already taking steps to comply.
To prevent Apple using the same tactic it is attempting in the US in an ongoing court battle with Epic Games, Reuters reports that the CMA specifically bans the iPhone maker from charging developers unreasonable fees for the privilege.
The proposal is now open to comments.
Apple Wallet rivals
The CMA also proposes to force Apple to allow third-party rivals to the Apple Wallet app for contactless payments. This would enable competitors to Apple Pay.
These payments require access to the NFC chip embedded in modern iPhones, but Apple does not permit banks or other financial institutions to use it. The CMA is proposing to change this.
Apple opposes both proposals
Apple, of course, opposes both of the proposals.
9to5Mac’s Take
There is now substantial momentum behind obliging Apple to allow developers to choose third-party payment platforms for app and subscription sales in multiple countries around the world. The UK has clearly learned lessons from Apple’s response in other countries, and is seeking to specifically prevent the iPhone maker from technically complying while simultaneously negating any benefit to developers.
The case for opening up the NFC chip to banks and finance companies is significantly weaker. Apple’s fees are exceedingly small, and it seems unlikely iPhone users would choose to forgo the convenience of having all contactless payment options within a single app in favor of using rival apps with more limited scope.
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