UK Regulators Push Apple to Open App Payments and Compete with Apple Pay Rivals

Key Points

• Britain’s Competition and Markets Authority (CMA) has proposed forcing Apple to let developers steer users towards third-party payment options for app and subscription purchases.
• The watchdog wants to stop Apple repeating tactics already used to soften the impact of similar rules in the European Union and the United States.
• Any fees Apple or Google charge for allowing “steering” must be fair, reasonable and lower than current App Store commissions, according to the CMA.
• Will Hayter, the CMA’s executive director for digital markets, says fees must be backed by clear evidence of cost and value.
• A separate proposal would force Apple to open up its iPhone NFC chip, potentially allowing rivals to Apple Pay and Apple Wallet to operate in the UK.
• Apple has formally opposed both proposals, warning that consumers could lose protections if directed away from its payment systems.
• Google says it is already taking steps towards compliance with the new UK rules.
• The proposals are now open for public and industry consultation before any final decision is made.

London (Britain Today News) June 30, 2026 – Apple faces fresh regulatory pressure in the United Kingdom after the Competition and Markets Authority set out proposals that would compel the technology giant to allow developers to direct customers to payment methods outside its App Store. The plans, published on Tuesday, would also open the door to rivals challenging Apple Pay’s dominance of contactless payments on iPhones sold in Britain.

The CMA’s intervention follows years of scrutiny of Apple’s App Store practices across multiple jurisdictions, and regulators in London appear determined not to repeat what they regard as the shortcomings of earlier enforcement efforts elsewhere.

What Has the CMA Actually Proposed?

The CMA has proposed banning Apple from using the same forms of resistance it has deployed in both the EU and the US, where it complied with regulatory orders in ways critics labelled “malicious compliance.” The new UK proposal would specifically require Apple to allow developers to link to third-party payment options for purchasing apps and subscriptions outside the App Store, rather than forcing every transaction through Apple’s own payment infrastructure.

This marks a significant shift in how the regulator intends to police Apple’s conduct, focusing not only on the existence of a rule but on closing the loopholes that have allowed Apple to blunt similar requirements abroad.

How Did the EU and US Cases Set the Stage?

The European Union previously required Apple to permit third-party app stores on iPhones sold within the bloc, while a US court ruled separately that developers have the right to direct iPhone users towards third-party payment platforms for app purchases and subscriptions. The CMA’s latest proposal effectively seeks to apply this US-style rule to the UK market, rather than the broader EU approach of mandating alternative app stores altogether.

Officials in London have clearly studied how both regimes played out before drafting their own approach.

Why Does the CMA Call Apple’s Past Compliance “Malicious”?

Apple has so far sought to limit the practical impact of these international rulings through tactics regulators and commentators have described as malicious compliance. In the EU, Apple introduced warning screens that critics characterised as deliberately discouraging users from installing third-party app stores, even after being legally required to permit them.

In the US, the company has maintained that it retains the right to charge commissions even on purchases completed outside the App Store. Critics argue the cumulative effect of these commissions could cancel out any financial benefit developers might otherwise gain from using alternative payment systems, effectively neutralising the intent of the original ruling.

What Exactly Would Developers Be Allowed to Do Under the New UK Rules?

Under the CMA’s proposal, developers operating in the UK would be permitted to steer users towards alternative payment options entirely outside both the Apple App Store and Google’s Play Store. This would give consumers a genuine choice between paying through the platform owner’s system or a competing payment provider, rather than being locked into a single option by default.

Google has indicated that it is already taking steps to align its own practices with the anticipated requirements, suggesting a smoother path to compliance than may be the case for Apple.

How Will the CMA Stop Apple Repeating Its US Legal Strategy?

To prevent Apple from attempting in Britain the same approach it is currently pursuing in its ongoing American legal dispute with Epic Games, the regulator’s proposal explicitly bars Apple from charging developers unreasonable fees for the privilege of steering customers to outside payment options. This provision appears designed specifically to close the loophole that has made the US ruling less effective in practice than developers had hoped.

The CMA has stated that any fees charged by either of the two dominant technology companies for allowing such steering must be fair and reasonable, and should be set lower than existing app store commission rates, with resulting savings expected to be passed on to consumers or reinvested into product innovation.

What Has the CMA Said About Justifying Fees?

Will Hayter, the CMA’s executive director for digital markets, addressed the rationale behind the fee restrictions directly. While acknowledging that Apple and Google are entitled to compensation for the services they provide, Hayter said any charges they impose

“must be justified through a robust, evidence-led framework involving due reference to both cost and value.”

His remarks were prepared for delivery later on Tuesday.

The comments signal that the CMA intends to scrutinise any fee structure Apple or Google subsequently introduces, rather than simply mandating that steering be allowed in principle.

Could Apple Pay Soon Face Competition in the UK?

Beyond the App Store payment changes, the CMA has also proposed forcing Apple to allow third-party alternatives to the Apple Wallet app for contactless payments, a move that would open the door to direct competitors to Apple Pay operating on iPhones in Britain for the first time.

This proposal targets one of the more closely guarded elements of Apple’s ecosystem, given the central role Apple Pay plays in the company’s services revenue and its broader strategy of keeping users within its own software environment.

Why Does NFC Access Matter So Much?

Contactless payments of this kind rely on access to the near-field communication, or NFC, chip embedded in modern iPhones. Apple currently does not permit banks or other financial institutions to make direct use of this chip, a restriction that has effectively prevented rival payment apps from offering true tap-to-pay functionality on iOS devices.

The CMA is proposing to change this arrangement, opening the NFC chip to third parties under appropriate conditions.

What New Services Could Emerge If NFC Access Is Opened?

The CMA said it is considering requiring Apple to provide access to its NFC technology, potentially allowing software developers to offer payment services directly within their own iOS applications rather than routing everyone through Apple Wallet. According to the regulator, this could enable UK financial technology companies to build genuine alternatives to Apple’s wallet system, including account-to-account payment services and emerging technologies such as digital currencies.

Such a change could meaningfully reshape the competitive landscape for mobile payments in Britain, particularly for fintech firms that have long argued Apple’s restrictions limit innovation.
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How Has Apple Responded to the Proposals?

Apple has made clear that it opposes both elements of the CMA’s plan. A company spokesperson said that when users are directed away from Apple’s payment infrastructure, they lose the protections they rely on Apple to provide, and confirmed the company would continue to make its concerns known to the regulator as the consultation proceeds.

The statement reflects Apple’s long-standing position that its tightly controlled payment and app ecosystem exists primarily to protect user security and privacy, an argument the company has consistently made in its disputes with regulators in the EU and US.

What Happens Next in the Consultation Process?

The CMA’s proposals are now open for comment from Apple, Google, developers, financial institutions and other interested parties. No final decision has been made, and the consultation period will determine the eventual shape of any binding requirements imposed on the two companies.

Given the scale of the changes under consideration, both the App Store payment provisions and the NFC access proposals are likely to attract substantial submissions from industry stakeholders before the CMA moves towards a final ruling.

Why Does This Matter for UK Consumers and Developers?

For app developers, the ability to steer customers towards lower-cost payment options outside Apple’s and Google’s ecosystems could meaningfully reduce the commission burden that has long been a point of contention in the mobile software industry. For consumers, the proposed changes to NFC access could eventually mean more choice in how they make contactless payments, beyond Apple’s own wallet system.

Whether these benefits materialise as intended will depend heavily on how strictly the CMA enforces the fee restrictions it has proposed, particularly given Apple’s history of adapting its compliance strategies to limit the practical impact of similar rulings elsewhere.