UK Pushes Apple to Loosen App Store Payment and NFC Rules

[MacRumors]

The U.K.'s competition regulator has proposed letting app developers direct users to payment options outside Apple's App Store and Google's Play Store, in a move aimed at increasing competition and reducing the fees charged by the two companies.

As reported by Reuters, the Competition and Markets Authority (CMA) said the proposals would remove restrictions that currently prevent U.K. developers from directing users to off-platform payment options.

The regulator said any fees Apple and Google charge developers for enabling such "steering" must be fair and reasonable, remain below existing App Store and Play Store commissions, and allow developers to either pass savings on to consumers or reinvest them in innovation.

The CMA said it was also considering making Apple open up access to its near-field communication (NFC) technology, which is used for Apple Pay contactless payments. This would allow developers to potentially offer alternative payment options within their own apps.

Last year, Apple was designated with strategic market status (SMS) in the U.K. for iOS and iPadOS, which enables the CMA to initiate targeted interventions designed to open the platforms to greater competition.

Apple has previously said it does not support allowing developers to direct users to off-platform payments. The company argues this could undermine user security and fraud protections, and limit its ability ⁠to verify transactions.

An Apple spokesperson told Reuters it could open the door to "scams, bait-and-switch tactics, and the circumvention of parental controls."

"When users are directed away from Apple's trusted payment infrastructure, they lose the protections they rely on Apple to provide," the spokesperson said, adding the U.S. tech giant would continue to "make our concerns clear" ⁠to the CMA.

In February, Apple and Google agreed to a series of changes aimed at making their app stores fairer for developers. Under terms published by the CMA, both companies said they will ensure apps are reviewed and ranked on their app stores in a "fair, objective and transparent way," without discrimination against apps that compete with their own services.

Apple must allow developers to more easily request access to iOS features and functionality, which could clear the way for third-party apps to better compete with Apple's own services.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: UK Pushes Apple to Loosen App Store Payment and NFC Rules

 

[All Taken]

Apple need oversight to avoid becoming a monopoly. It can't be trusted to always make the right decisions in the best interests of customers and profits - fairly.

That said - Do I trust the UK, the US, the EU to do this in a way less biased to their own agendas than Apples own? Absolutely not, they're all crooked and driven by spectators who have pockets to fill.

EDIT: I'm astonished at some of the users who will defend apple no matter what. Saying Apple need some sort of oversight isn't treason, it isn't trolling, it's common sense.

 

[Shalev Lazarof]

So Apple, the only company in the world built on a 50 years old culture, who is again, the ONLY one capable of delivering all those rich ecosystem platforms we enjoy as mere mortals today and not using plastic Nokia "phones" and beige frustrating windows fragmented crappy "computers", should LISTEN to The U.K.'s competition regulator who probably have no idea about the creativity and deep engineering knowledge necessary in order to create those highly integrated insane attention to details consumer electronics devices and services, who created this all App world with all the quality control and privacy protections and laid the foundation to the mobile reality we live in today, is that what's going on here?

 

[All Taken]

So Apple, the only company in the world capable of delivering this rich ecosystem platforms, services and digital devices should LISTEN to The U.K.'s competition regulator who probably have no idea about the creativity and deep engineering knowledge necessary in order to create those highly integrated insane attention to details consumer electronics devices and services, is that what's going on here?

They're highly educated people who may not have ever worked in the field or for a top 100 company, but they do likely have a basic degree and that's enough apparently. I'm sure the innovators of the world love being told they're doing it wrong by somebody with such experience.

 

[bluecoast]

I'm in the UK.

Yes, to all of this.

Generally in the 'free market' economies - and I put quotes around that as all of our free market economies do have regulation - we take the view that a first mover in a market does not have a right to keep on profiting from that virtually indefinitely, for the health of market competitiveness and consumer choice.

Anyway, we've all debated this point endlessly in this forum. I know that some will vehemently agree with me and that's ok. I'm a random person on the internet with a random opinion.

I partially buy Apple's arguments about user safety.

Similarly to how does in the App Store, it could have an 'official payment partner' programme, where it runs some checks on payment providers.

For example in the UK, we have a financial regulator who already does checks like this.

But why the deafening silence from Apple on taking such an approach?

I think that we can all guess why.

 

[Shalev Lazarof]

They're highly educated people who may not have ever worked in the field or for a top 100 company, but they do likely have a basic degree and that's enough apparently. I'm sure the innovators of the world love being told they're doing it wrong by somebody with such experience.

My doctor is highly educated as well, but he have no clue of what is a product and how it should operate or be used

 

[surferfb]

The regulator said any fees Apple and Google charge developers for enabling such "steering" must be fair and reasonable, remain below existing App Store and Play Store commissions, and allow developers to either pass savings on to consumers or reinvest them in innovation.

Pass them along to consumers or reinvest them? Absolute proof regulators have no idea what they’re talking about.

I’m old enough to remember when the EU said the DMA was going to lower prices for consumers and then Spotify immediately went and raised prices on EU customers. I’m sure that just slipped UK regulators minds, given it was a long time six months ago.

 

[widestload]

Next comes Apple pulling our access to AI etc like they have for the EU. A punishment for rocking the boat / easier to pull a feature than to amend it?

 

[All Taken]

My doctor is highly educated as well, but he have no clue of what is a product and how it should operate or be used

Hopefully your Doctor isn't masquerading as a drill dynamics engineer purely because he holds the same base degree. That's my point with the CMA, they are filled with folk who don't know the industry, have never experienced it, yet here we are.

 

[Will Co]

Apple need oversight to avoid becoming a monopoly. It can't be trusted to always make the right decisions in the best interests of customers and profits - fairly.

That said - Do I trust the UK, the US, the EU to do this in a way less biased to their own agendas than Apples own? Absolutely not, they're all crooked and driven by spectators who have pockets to fill.

A very sensible comment that I wholeheartedly agree with. History has shown that big tech, no matter how benign it appears, has often wandered off down a path that protects or serves its own interests rather than those of its customers. This becomes a problem at scale, when entire societies are built on that technology. It is absolutely right for those societies governments to seek to ensure fairness and openness. However, history has also shown that those same governments often get it badly wrong and overreach. I'm not sure it's always down to crookedness or being driven by greedy spectators, although I absolutely accept this could well be the case in some circumstances. For the most part the EU, for example, just seems to go off down a technological rabbit-whole that started out well meaning but ends up being arguably worse than the original problem. The UK government just seems to lurch from one badly advised and idiotic position to the next (ADP, anyone?), and that's coming from a UK national.

[Edited: typos]

 

[surferfb]

Next comes Apple pulling our access to AI etc like they have for the EU. A punishment for rocking the boat / easier to pull a feature than to amend it?

Unless and until the UK competition regulator says Apple has give companies like Grok the ability to access to literally everything on your phone, and can’t make Grok promise to treat that data privately, your Siri AI is safe in the UK.

 

[robvalentine]

Unless and until the UK competition regulator says Apple has give companies like Grok the ability to access to literally everything on your phone, and can’t make Grok promise to treat that data privately, your Siri AI is safe in the UK.

Addendum, only if you install and explicitly give permission. Letting you do something, and forcing you to do something are 2 different things. That said of all the AI's grok is the one that will be kept far away from my phone and computers.

 

[Smartuser]

Unless and until the UK competition regulator says Apple has give companies like Grok the ability to access to literally everything on your phone, and can’t make Grok promise to treat that data privately, your Siri AI is safe in the UK.

Oh, they'll promise to alright.

 

[surferfb]

Addendum, only if you install and explicitly give permission. Letting you do something, and forcing you to do something are 2 different things. That said of all the AI's grok is the one that will be kept far away from my phone and computers.

Apple should be able to say “that’s a bad idea, and we think it’s bad for our customers so we’re not going to allow it.” My point is if the government comes back and says “too bad, you have to” withholding that feature isn’t “punishment” but rather a rational decision.

So if UK regulators think exposing their citizens to an increased risk of scams and worse user experience is worth it so companies like Spotify can keep more of money, that’s their prerogative. But the previous poster doesn’t need to worry about losing access to features over this.

 

[emulator]

My doctor is highly educated as well, but he have no clue of what is a product and how it should operate or be used

How about your engrish teacher? Is he, as well? And I'm sure your doctor probably knows what a product is...

 

[joiwomcow]

Is this the same UK government that requires providing a government ID to browse the internet on Apple devices?

 

[krspkbl]

Is this the same UK government that requires providing a government ID to browse the internet on Apple devices?

I haven't given my government ID to use my iPhone. Do you even know what you're talking about?

Never once have I had to send my driving license or passport to be able to use my iPhone or browse the internet.

 

[joiwomcow]

I haven't given my government ID to use my iPhone. Do you even know what you're talking about?

Never once have I had to send my driving license or passport to be able to use my iPhone or browse the internet.

You don’t live in the UK then?

Apple iPhone users in the UK asked to verify age with new update

Customers who do not confirm how old they are or are underage will have web content filters turned on automatically.

www.bbc.co.uk

 

[I7guy]

Increasing competition is not taking someone’s existing business and giving it away for free. That is the government playing Robin Hood.

 

[NightFox]

You don’t live in the UK then?

Apple iPhone users in the UK asked to verify age with new update

Customers who do not confirm how old they are or are underage will have web content filters turned on automatically.

www.bbc.co.uk

Except you don't have to provide government-provided ID as proof to Apple.

 

[jlwarlow]

I already have the option to select a different contactless app on my UK iPhone? Granted I have no apps to choose from but the option is there:

 

[robvalentine]

Apple should be able to say “that’s a bad idea, and we think it’s bad for our customers so we’re not going to allow it.” My point is if the government comes back and says “too bad, you have to” withholding that feature isn’t “punishment” but rather a rational decision.

So if UK regulators think exposing their citizens to an increased risk of scams and worse user experience is worth it so companies like Spotify can keep more of money, that’s their prerogative. But the previous poster doesn’t need to worry about losing access to features over this.

Warning is fine, but let users do what they want with their products that they have paid good money for.

 

[robvalentine]

Is this the same UK government that requires providing a government ID to browse the internet on Apple devices?

That's just apple, I haven't had to do it on my Android.

 

[Will Co]

Is this the same UK government that requires providing a government ID to browse the internet on Apple devices?

Silly. That doesn't actually happen. Apple itself might require some form of age related proof before you can do certain things, but there's nothing government related going on.

 

[MrSnirf]

They need to be forced, not pushed. Google has "gotten" the message and it was a matter of time Apple gets with the program.