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Competition regulator ‘falls short’ in app developer consultation

The Coalition for App Fairness has called for stronger action

App consultation

The UK’s competition regulator’s announcement of a consultation that could force Apple and Google to adopt more app developer friendly policies “falls short of what is needed” according to a prominent group of developers.

The Competition and Markets Authority (CMA) unveiled on Tuesday a new consultation that could lead to a new requirements for app store owners to remove restrictions on developers preventing them from “steering”, which refers to directing users away from the payment systems directly tied to the app stores.

It has been a particular point of contention among app developers, which almost entirely rely on the app marketplace ecosystems owned by Apple and Google.

Developers listing apps on these stores have to give the owners up to a 30% cut of revenue generated on their apps.

Though firmly in support of preventing unfair behaviour from Apple and Google, the Coalition for App Fairness, a prominent non-profit with software developer members including Epic Games and Spotify, has warned the newly announced measure will not go far enough.

“While the CMA has moved to allow developers to steer consumers to payment options outside apps, today’s measures fall short of what is needed to meaningfully increase competition, reduce discrimination against digital businesses, and improve outcomes for developers and consumers in the UK,” said the group in a statement.

“Any fee can only be justified by transparent data from Apple and Google on the actual costs they incur facilitating steering. Without conduct requirements that explicitly prohibit or restrict fees on transactions Google and Apple do not process, this reform risks being little more than cosmetic.”

Last year the CMA designated Apple and Google as having Strategic Market Status (SMS) due to the fact that they control 95% of the all mobile operating systems in the UK.

The consultation announced this week is part of the CMA’s proposed interventions that it can enact following this designation under the Digital Markets, Competition and Consumers Act.

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