CMA cans Apple, Google app market probes ahead of new regulation

21st Aug 2024 13:04

(Sharecast News) - The Competition and Markets Authority (CMA) has closed its investigations into Google's Play Store and Apple's App Store, it announced on Wednesday, shifting its focus to the forthcoming digital markets competition regime.

The CMA initiated the cases over concerns that Google and Apple were leveraging their dominant market positions to impose unfair terms on UK app developers, potentially stifling competition and limiting consumer choice.

Its investigations scrutinised the companies' requirements for app developers to use their in-house billing systems for in-app purchases, which the CMA argued could restrict developers' payment options and reduce direct engagement with customers.

Google proposed commitments, including allowing developers to use alternative payment methods through 'Developer-only Billing' and 'User Choice Billing.'

However, after consulting with developers and reviewing the evidence, the CMA concluded that the proposals were insufficient.

Developers expressed concerns that they would still be financially tied to Google's system, and that proposed pop-up screens could deter users from completing purchases.

The closure of the cases came as the regulator prepared for the implementation of the Digital Markets, Competition and Consumers Act (DMCCA), which passed in May.

It said the new legislation would give it broader powers to address competition issues in digital markets more comprehensively.

If Google or Apple were designated as having 'strategic market status' in the mobile sector, the CMA would be able to reconsider the concerns raised during its investigations under the new regime, potentially leading to more effective interventions.

"Once the new pro-competition digital markets regime comes into force, we'll be able to consider applying those new powers to concerns we have already identified through our existing work," said Will Hayter, executive director for digital markets at the CMA.

"It's critical that tech businesses in the UK, including app developers, can have access to a fair and competitive app ecosystem, helping to grow the sector, boost investment and result in better outcomes for UK consumers.

"These are all factors we are considering before launching our first investigations under the new regime."

Reporting by Josh White for Sharecast.com.