In-app Purchases

UK competition regulator to open in-app purchases outside of Apple and Google app stores

The UK Competition and Markets Authority is considering enabling app developers to steer users to alternative payment channels outside Apple and Google app stores to reduced fees and increase competition.

Currently, in-app purchases by users in the UK and most other countries are allowed by the two companies only through their app stores, with fees of up to 30% for each purchase, although Google is now reported to have begun steps to allow third-party purchases.

Earlier this year, CMA secured a commitment from the two companies to not giving preferential treatment to their own apps and not discriminating against competing apps.

With this week’s move, the competition watchdog is once again challenging the ‘effective duopoly’ by the two tech giants over mobile systems, this time by allowing developers to steer users away from their app stores to make purchases.

Separately, last month, Apple announced options for Brazil developers to distribute apps on alternative app marketplaces and to process in-app payments for digital goods and services outside of Apple In-App Purchase, following an earlier agreement with the country’s competition regulator Conselho Administrativo de Defesa Econômica.

We continue to monitor these developments and will return here with further updates.

Your feedback is important to us. To discuss any aspect covered in this article and how we can help, contact us now.

Other recent updates

The UK Competition and Markets Authority is considering enabling app developers to steer users to alternative payment channels outside Apple and Google app stores to reduced fees and increase competition.

Currently, in-app purchases by users in the UK and most other countries are allowed by the two companies only through their app stores, with fees of up to 30% for each purchase, although Google is now reported to have begun steps to allow third-party purchases.

Earlier this year, CMA secured a commitment from the two companies to not giving preferential treatment to their own apps and not discriminating against competing apps.

With this week’s move, the competition watchdog is once again challenging the ‘effective duopoly’ by the two tech giants over mobile systems, this time by allowing developers to steer users away from their app stores to make purchases.

Separately, last month, Apple announced options for Brazil developers to distribute apps on alternative app marketplaces and to process in-app payments for digital goods and services outside of Apple In-App Purchase, following an earlier agreement with the country’s competition regulator Conselho Administrativo de Defesa Econômica.