Britain plans to dismantle Apple Inc. (AAPL.US) and Alphabet Inc. Class C (GOOGL.US) barriers to the "App Store tax" are facing a new challenge.
The UK competition regulator proposed on Tuesday allowing app developers to guide users to other payment channels outside of Apple (AAPL.US) and Google (GOOGL.US) app stores to reduce costs and promote competition.
On Tuesday, the UK's competition watchdog proposed allowing app developers to guide users to payment channels outside of Apple Inc. (AAPL.US) and Alphabet Inc. Class C (GOOGL.US) app stores in order to reduce costs and promote competition.
The Competition and Markets Authority (CMA) stated that these proposals would eliminate current restrictions that prevent UK developers from directing users to payment channels outside of the platforms, which has previously been banned by Apple Inc. and restricted by Alphabet Inc. Class C.
The regulator stated that any fees charged by the two companies for allowing such "guidance" must be fair and reasonable, and should be lower than the current app store commissions. The money saved should then be passed on to consumers or reinvested in innovation.
The CMA is also considering requiring Apple Inc. to open up access to its Near Field Communication (NFC) technology, which could allow developers to offer proximity wireless payments (touch payments) within their own iOS apps.
In an email statement, Alphabet Inc. Class C stated: "We have made the changes proposed by the CMA today."
The company noted that new Play Store terms introduced earlier this month have allowed developers to guide users to complete transactions outside of the platform under certain conditions, while also adjusting the fee structure.
Global crackdown on "ecosystem taxes"
Regulators worldwide are launching a historic crackdown on the "walled gardens" built by Apple Inc. and Alphabet Inc. Class C. For a long time, these two giants have made hefty profits with their high app store taxes of 15% to 30%, but now, this easy money has become the target of a global anti-trust storm.
In Europe, the EU has officially rolled out the milestone Digital Markets Act (DMA), which legislatively determines Apple Inc. and Alphabet Inc. Class C as the "gatekeepers" of the digital economy, forcing them to open up to third-party app stores and allowing web sideloading. In response to Apple Inc.'s delay tactics in charging for "core technology fees," the EU has issued a hefty fine of 5 billion euros.
Meanwhile, on the American front, the Department of Justice (DOJ) has not only launched a century-old antitrust lawsuit against Apple Inc., but the bipartisan American Innovation and Choice Online Act (AICOA) is also accelerating, vowing to tear open the tech giants' monopoly fissure from both judicial and legislative angles.
The boundaries of this game have extended beyond just "lowering platform fees" in the digital realm, directly into a power struggle over control of core technologies. In recent developments, the EU and UK's Competition and Markets Authority (CMA) have reached a strong consensus, demanding that Apple Inc. must fully open up iPhone's NFC (Near Field Communication) chip permissions to third-party payment software.
This means that Apple Pay's absolute monopoly on touch payments within the iOS ecosystem has come to an end, allowing developers to not only guide users through external links for low-rate transactions, but also provide pure proximity wireless payment services directly within their apps.
While the giants are still trying to repair their walls through complex compliance measures, the consensus of "reducing commissions, lifting hardware restrictions, and comprehensive anti-guidance" has become an irreversible regulatory trend.
Related Articles

COSCO SHIPPING Development(02866) plans to invest 8.656 billion yuan to acquire a total of 24 vessels.

REALWAY CAPITAL(01835): Change of controlling shareholder, offering a cash offer of approximately 39.39% discount and will resume trading on July 2nd.

HUNLICAR GROUP (03638) announced its annual performance, with a net profit attributable to shareholders of HK$28.166 million.
COSCO SHIPPING Development(02866) plans to invest 8.656 billion yuan to acquire a total of 24 vessels.

REALWAY CAPITAL(01835): Change of controlling shareholder, offering a cash offer of approximately 39.39% discount and will resume trading on July 2nd.

HUNLICAR GROUP (03638) announced its annual performance, with a net profit attributable to shareholders of HK$28.166 million.

RECOMMEND





