Chi Onwurah Calls for Tougher UK Action on Apple and Google App Store Fees

A high-profile debate has emerged in the United Kingdom regarding the dominance of Apple and Google in the smartphone market, with officials and industry advocates targeting what is described as an "app tax." According to source-based reporting from The Guardian Technology, Labour MP Chi Onwurah has published an article arguing that the tech giants operate a deep-seated duopoly that harms both consumers and developers.

Chi Onwurah, who serves as the Labour MP for Newcastle upon Tyne Central and West and chairs the parliamentary science, innovation and technology committee, stated that Apple and Google control the two primary app stores through which almost all mobile software reaches British users. Through the Apple App Store and the Google Play Store, both companies charge commissions of up to 30% on purchases made inside applications, regardless of production costs or product types.

The commentary highlights that developers lack alternative platforms and are forced to accept Silicon Valley terms. Furthermore, the report notes that developers face restrictions known as “steering,” which prevent them from informing users that cheaper options might be available outside the official app stores. For small British developers, these financial and operational constraints can impact hiring decisions, product investments, and business growth within the UK.

Consumers also absorb these costs indirectly. According to research commissioned by the Coalition for App Fairness and cited in the source material, British consumers pay approximately £700m annually to Apple and Google through app purchases. This figure is noted as being £232m higher than the combined UK corporation tax paid by the two companies last year, equating to roughly £55 per year for a household with four smartphone users.

The Competition and Markets Authority (CMA) has previously found that Apple and Google hold an effective duopoly, with at least 90% of UK mobile devices operating on their platforms. Without alternative app stores on iPhones or practical outside routes for most Android users, developers have no competitive alternatives to lower prices or alter distribution terms.

Legislative tools to address this market imbalance were established when Parliament passed the Digital Markets, Competition and Consumers Act (DMCCA) in 2024 with cross-party support. The act granted the CMA enforcement powers to require dominant platforms to alter abusive behaviors. However, the commentary expresses concern that the regulator has relied on voluntary commitments from Apple and Google rather than enforcing binding rules.

A pending decision by the CMA regarding steering restrictions—which would allow developers to guide users toward cheaper alternatives—is approaching following the close of a recent consultation. Observers and lawmakers are watching closely to see whether the regulator will implement mandatory requirements or accept voluntary gestures from the tech firms.

The outcome of this regulatory decision is expected to signal the government's approach to digital sovereignty and oversight of overseas technology platforms. Onwurah urged the CMA to utilize its statutory powers and called on government colleagues to support stronger regulatory enforcement to protect British consumers and app developers.