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‘Steering’ – the ability for developers to engage with customers about off‑platform options – is currently banned by Apple and restricted by Google in the UK. Lifting these constraints would allow developers to bypass mandatory fees set by platforms.
The CMA’s consultation includes principles to ensure that the fees Apple and Google charge for steering are fair and reasonable. Using an evidence-based framework, the CMA would expect steering fees to be lower than current app store charges, with savings passed onto UK customers or invested back into the developers’ businesses to support future innovation.
You will note the CMA is not saying that a smaller fee actually will result in lower prices for customers, because corporations — including developers — tend to be profit-seeking endeavours. They may increase prices when costs grow but that does not mean they do the opposite. But who cares? Lower costs permit more flexibility on pricing and, even if that money ends up in the pockets of developers instead of Apple, is that supposed to be a bad thing? Is there a reason why someone should be upset that they might pay the same amount but an indie developer gets to keep more of it?
The proposed policies are pretty straightforward from what I can see. Among other obligations, Apple is not allowed to use or require scare tactics when users are routed to an external payment mechanism and, while it is allowed to charge a steering fee, it is not allowed to count services not used by developers offering third-payments nor double-count for services already accounted for by other developer fees. Also, the CMA calls bullshit on Apple’s claim that third-party payments are particularly risky (page 32):
We note that Apple already requires the use of alternative in-app payment methods, including steering of users through a link-out, within apps offering physical goods and services. We understand that Apple has distinguished between the approach it takes to digital and physical goods and services for operational reasons, and not because of a different magnitude of risks to user security and privacy.
If this CMA proposal becomes law, it would be yet another country — I believe the seventh region, counting the E.U. as one — in which Apple’s anticompetitive App Store practices have been made illegal.
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