UK Consumers Pay £700m a Year for Apple and Google's Mobile App Dominance

Chi Onwurah, Labour MP for Newcastle upon Tyne Central and West and chair of the parliamentary science, innovation and technology committee, has spoken out against Apple and Google's control over mobile app stores in the UK.

The two companies' dominance means they can set terms for developers that are unacceptable to most businesses. They charge a commission of up to 30% on purchases made inside apps, regardless of what the product is or what it costs to make.

This 'app tax' has been estimated to cost British consumers around £700m per year, with £232m more going to Apple and Google than they paid in UK corporation tax last year. This equates to approximately £55 annually for a household with four smartphone users.

Onwurah argues that this is not just about developers or consumers but also about the role of regulators. She believes that the Competition and Markets Authority (CMA) should use its powers to enforce changes in Apple and Google's behaviour, rather than relying on voluntary commitments from the companies.