The Tool Desk
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What does “app tax” mean?
The phrase does not refer to a formal levy on phone owners. Onwurah uses “app tax” for costs and restrictions associated with distributing apps through Apple’s and Google’s mobile ecosystems. The CMA says the companies can charge commissions of up to 30% on some in-app purchases. “Up to” and “some” matter: the figure does not mean that every app purchase carries a 30% commission.
Onwurah’s argument is that developers may face both commissions and limits on steering—telling users about, or directing them to, a cheaper way to pay outside the app. She says these constraints can affect businesses’ ability to invest, hire and grow. Those are her claims about the effects; the cited CMA figures establish the regulator’s market framing and commission range, not a measured impact on hiring or investment.
Why Apple and Google are central to the debate
The CMA has described Apple and Google as an effective duopoly over UK mobile platforms and estimated that around 90–100% of UK mobile devices run on one of their platforms. That is the regulator’s estimate and characterization, not a claim that every individual developer has no other route to customers.
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Onwurah argues that the two companies control the principal app stores through which almost all UK mobile apps reach customers, leaving developers with limited distribution options. Her concern is not only the level of a possible commission, but also the terms attached to reaching users and accepting payments. The practical effect can differ by transaction and the applicable platform rules.
How reliable are the consumer-cost figures?
Onwurah cites estimates of roughly £700 million a year in payments by British consumers to Apple and Google, and £55 a year for a household with four smartphone users. The figures are attributed to research by the Coalition for App Fairness, as reported by the Daily Mail and repeated in her Guardian article. The underlying study and its methodology are not set out in the article, and the figures are not official CMA statistics. Treat them as reported estimates, not a verified bill paid by every phone user or household.
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The Guardian article also compares the £700 million estimate with the companies’ combined UK corporation-tax payments. The relevant tax year and calculation are not sufficiently specified in the available account to assess that comparison, so it should not be treated as an independently established figure.
What has the CMA done, and what remains separate?
The UK digital-markets regime
The Digital Markets, Competition and Consumers Act 2024 created the UK regime under which the CMA can designate firms with strategic market status (SMS) and consider interventions in designated markets. SMS designation is a regulatory status; it does not itself impose a particular steering rule.
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October 2025: strategic market status designations
On 22 October 2025, the CMA designated Apple and Google as having SMS for their respective mobile platforms. The platforms covered include mobile operating systems, native app distribution and mobile browsers or browser engines. The CMA distinguishes designation from later legal steps, including conduct requirements and pro-competition interventions.
2026: proposed steering requirements
In 2026, the CMA consulted on proposed steering conduct requirements for Apple and Google. Its case pages record consultation responses published on 14 August 2026. Those milestones establish that the proposals were under formal consideration; they do not, by themselves, establish that a final steering requirement had taken effect. The status may have changed since that update, so readers should check the CMA’s current case pages for any later decision.
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The distinction matters: a proposal is not an operative rule, and designation is not the same as enforcement. The CMA’s materials also cover commitments relating to aspects of platform processes, alongside the separate steering work. Onwurah characterizes reliance on voluntary commitments as weak; that is her assessment rather than a neutral description of every CMA measure.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Onwurah wants the government and CMA to do
Onwurah calls on the CMA to use the powers created by the 2024 Act and on government to support that approach. She presents the case as one of consumer choice and fair terms for developers, not opposition to technology or economic growth. As she puts it: “This is not about being anti-technology or anti-growth.” Her recommendation is an argument for regulatory action, not evidence that a specific intervention has already been adopted or that its effects are settled.
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Any binding approach would need to resolve practical questions, including whether developers can tell users about and complete external transactions, what fees or conditions may apply to those transactions, and how rules address price transparency, privacy, security and fraud. The CMA’s consultation process is where the proposed requirements and responses are considered; the available milestones do not establish a final balance among those interests.
Quick Recap
What phone users should take from the debate
- “App tax” is an informal label for platform costs and restrictions, not a government tax automatically charged to every phone owner.
- The CMA’s market estimate and its “up to 30%” figure describe platform concentration and commissions on some in-app purchases; neither is a universal rate on every app transaction.
- The £700 million and £55 figures are reported Coalition for App Fairness estimates, not official CMA measurements or verified individual household costs.
- Apple’s and Google’s SMS designations are in place, but designation alone does not mean a steering rule is in force. Check the CMA’s latest update for the outcome of its 2026 process.
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