UK CMA Forces Apple to Open iOS to Third-Party Stores, Caps Fees at 15%
The UK's Competition and Markets Authority secured five-year commitments requiring Apple to allow third-party iOS app stores and sideloading by March 2026 while capping App Store commissions at 15% for small developers. Google must lower Play Store fees to 10% and permit alternative payment options, intensifying competition in mobile services.
1. CMA Secures Binding Commitments
The UK's Competition and Markets Authority finalized legally binding five-year commitments from Apple requiring the launch of third-party iOS app stores and sideloading by March 2026. Apple will also allow alternative payment processors on iOS within this timeframe.
2. Commission Caps for Developers
Under the terms, App Store commissions for developers with under £1 million in UK annual sales will be capped at 15%, down from as high as 30%, and Apple must permit direct payment methods. These changes aim to lower barriers for small and mid-sized app makers.
3. Google Agrees Parallel Concessions
Google committed to reducing Play Store fees to 10% for qualifying developers and to allow rival Android app marketplaces under the same digital markets regime. The concessions mirror those required of Apple and take effect by March 2026.
4. Implications for Apple’s Revenue and Market
Analysts warn the changes could trim Apple's services revenue growth by several basis points and escalate competitive pressures in the App Store. The UK precedent may trigger similar regulatory actions in the EU and U.S., reshaping global app distribution economics.