Apple to Open UK App Store to Third-Party Apps, Cap Fees at 0.5%
Apple agreed to allow third-party app stores and alternative payment systems in the UK by March 2026, marking its first sideloading concession outside Europe. The company will cap transaction fees for third-party stores at 0.5% while Google will permit approved third-party app marketplaces at a maximum 4% fee.
1. Regulatory Background
Britain’s Competition and Markets Authority ordered both Apple and Google to alter app distribution and in-app billing practices in order to boost competition and consumer choice. The CMA’s market study cited high commission rates and lack of alternative storefronts as barriers for UK developers.
2. Apple’s Key Commitments
Under the agreement, Apple will enable sideloading and host third-party app stores on iOS devices sold in the UK by March 31, 2026. It will levy a 0.5% fee on transactions processed through these alternative stores, down from its standard 30% commission.
3. Google’s Parallel Changes
Google will allow approved third-party Android app marketplaces in the UK starting April 2024, charging up to a 4% commission on transactions. It will also cut its default Play Store fee from 11% to 4% for lower-revenue developers.
4. Implications for Apple’s Valuation
Opening the App Store could shrink Apple’s services gross margin yet may spur additional app volume and user engagement. Investors will watch how lower fees and increased competition affect Apple’s services revenue growth and operating margins.