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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →“App tax” is an informal label, not a government tax: it describes app-store commissions and rules that can limit how developers sell to users. The UK Competition and Markets Authority (CMA) says Apple and Google’s mobile platforms cover around 90–100% of UK mobile devices, and that they charge commissions of up to 30% on some in-app purchases. The rate does not apply to every transaction.
What does “app tax” mean?
In her Guardian opinion article, published on 4 October 2026, Chi Onwurah uses “app tax” to describe costs and restrictions associated with distributing apps through Apple’s and Google’s stores. The label is a political shorthand for commercial rules, not a formal levy collected by government. Onwurah argues that developers bear these costs and that they can ultimately affect consumers.
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The CMA’s competition framing supplies important context: it has described Apple and Google as an effective duopoly over UK mobile platforms. Its estimate that the platforms account for around 90–100% of UK mobile devices is the regulator’s estimate, not a measurement made by Onwurah.
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How commissions and steering affect app transactions
Commissions vary by transaction
The CMA says commissions can be up to 30% on some in-app purchases. “Up to” and “some” matter: this is not a claim that every app, purchase, or developer pays a 30% commission. The applicable terms and rate depend on the transaction.
#1 Best Overall
- This phone is unlocked and compatible with any carrier of choice on GSM and CDMA networks (e.g. AT&T, T-Mobile, Sprint, Verizon, US Cellular, Cricket, Metro, Tracfone, Mint Mobile, etc.).
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Steering is about communicating payment options
“Steering” refers to whether an app developer may tell users about, or direct them to, a payment option outside the app store. Onwurah argues that restrictions on steering make it harder for developers to offer cheaper external payment options. She says the combination of commissions and restrictions can affect hiring, investment, and the ability of UK developers to grow; those are her arguments, not quantified outcomes established by the CMA figures above.
What the consumer-cost estimates do—and do not—show
Onwurah cites an estimate of approximately £700 million a year in payments by British consumers to Apple and Google, and an illustrative £55 annually for a household with four smartphone users. These figures are attributed to Coalition for App Fairness research, whose year and underlying methodology are not specified in her article; they were reported by the Daily Mail and repeated by Onwurah. They are not official CMA statistics or independently verified household bills.
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Her article also compares the estimated payments with the companies’ combined UK corporation-tax payment in the “last year.” The relevant tax year and calculation are not specified sufficiently to verify that comparison, so it should not be treated as a settled measure of the difference.
What the CMA has done and what remains separate
- Digital Markets, Competition and Consumers Act 2024: The Act created the UK digital-markets regime that Onwurah urges the CMA to use.
- 22 October 2025: The CMA designated Apple and Google as having strategic market status (SMS) for their respective mobile platforms, including mobile operating systems, native app distribution, and mobile browsers and browser engines. SMS designation establishes regulatory status; it does not by itself impose a steering rule.
- 2026 steering process: The CMA consulted on proposed conduct requirements for steering and published consultation responses on 14 August 2026. Those published steps establish that a formal process was under way, not that a final steering requirement had taken effect. A later CMA decision could change that position.
The CMA’s pages also describe commitments concerning aspects of platform processes. Onwurah characterizes voluntary commitments as inadequate and argues for binding action. That is her assessment; commitments and separate formal regulatory interventions should not be conflated.
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What is at stake in the policy choice?
Onwurah’s recommendation is that the CMA use its statutory powers and that the government support it. She frames this as compatible with technology and economic growth, writing: “This is not about being anti-technology or anti-growth.” The policy question is not simply whether developers should be able to steer users elsewhere; the design of any rules also matters.
- Binding requirements or commitments: A conduct requirement is a formal regulatory measure; voluntary commitments are a different route. SMS status alone does not settle which measure applies.
- External transactions: Any steering rule would need to specify what developers may communicate and whether users can complete a transaction outside an app.
- Fees and conditions: The terms attached to external payments, if any, affect whether the option is practically useful to developers and consumers.
- Consumer safeguards: Price transparency, privacy, security, and fraud protections are relevant considerations in designing payment options.
- Timing and oversight: The consultation and response stage is distinct from a final decision, implementation, and any review or enforcement process.
These are questions for the regulatory process, not findings that any particular set of safeguards or fees has already been adopted.
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