UK regulator urged to act on Apple‑Google app store duopoly that creates an effective ‘app tax’ for consumers

Executive summary: A Guardian commentary highlights that Apple and Google's duopoly over mobile app stores creates an 'app tax' that consumers effectively pay, urging the UK Competition and Markets Authority to use its powers to curb the abuse. The app store fees affect developers' revenues and can lead to higher prices for consumers, raising competition concerns in a key digital market.

Who is involved: Apple, Google, UK Competition and Markets Authority (CMA), and commentator Chi Onwurah (Labour MP).

Likely next: The CMA may decide whether to launch a formal investigation or accept voluntary commitments from the tech giants regarding app store fees.

The Guardian’s commentary highlights that Apple’s App Store and Google Play together control the distribution channels for the vast majority of mobile applications in the United Kingdom, allowing each platform to impose transaction fees that developers must pay to reach users. Because those fees are incorporated into the price of apps or in‑app purchases, the cost is ultimately borne by consumers, which the article characterises as an effective ‘app tax’. The piece notes that the UK Competition and Markets Authority already possesses the statutory authority under the Enterprise Act to investigate alleged abuses of dominant position and to impose remedies such as behavioural orders or structural changes. From a business perspective, the duopoly’s fee structure raises developers’ operating costs, potentially discouraging innovation or leading to higher prices for digital goods and services. If the CMA decides to act, it could require the platforms to allow alternative payment mechanisms, adjust fee levels, or increase transparency, which would affect revenue streams for Apple and Google and could reshape competitive dynamics in the app ecosystem. In the near term, the regulator is likely to gather evidence, consult stakeholders, and determine whether a formal investigation is warranted, a process that would clarify the extent of any market power abuse and outline possible corrective measures.

What's next — scenarios

Base: CMA opens formal investigation (50%)

Apple and Google could be required to change fee structures or allow alternative payment systems.

CMA publishes notice of investigation
Receives formal complaints from developer groups
Launches a market study into app store fees

Upside: Voluntary fee commitments accepted (30%)

App developers see reduced commission rates, increasing net revenue while preserving platform access.

Apple and Google submit fee reduction proposals to the CMA
CMA publishes acceptance of commitments
Monitoring committee verifies compliance

Downside: CMA finds no breach and closes case (20%)

The status quo remains, with existing app store fees and developer terms unchanged.

CMA concludes investigation with no enforcement action
Publishes closure notice stating no competition law infringement
No further regulatory steps announced

What to watch

CMA publishes a notice of investigation into app store fees
Apple or Google announces a change to app store commission rates
Developer associations submit formal complaints to the CMA

Timeline

2026-10-04 — Own a mobile phone? Then you’re paying the ‘app tax’. It’s a racket and it’s time the UK faced Apple and Google down | Chi Onwurah (The Guardian — Business)

Analysis — what this means

Sectors affected

mobile app distribution
smartphone operating systems

Regulatory implications

UK Competition and Markets Authority may launch an investigation into Apple and Google app store fees under competition law

Key entities

Sources

Own a mobile phone? Then you’re paying the ‘app tax’. It’s a racket and it’s time the UK faced Apple and Google down | Chi Onwurah — The Guardian — Business

Related cases

Browse the full archive →