The UK’s Competition and Markets Authority (CMA) has decided to close its investigations into the mobile app stores of Apple and Google.
These probes, which began in March 2021 and June 2022 respectively, investigated the companies’ practices in app distribution through their App Stores.
The investigations focused on the terms and conditions set by Apple for developers on its iOS and iPadOS platforms, as well as Google’s Play Store rules governing in-app purchases on Android devices. Issues were put forward that these practices might limit developers’ choices.
Despite initial findings indicating possible anti-competitive conduct, the CMA has opted not to take further action. The reason for closing these cases is linked to the anticipated powers that the CMA expects to receive under the new Digital Markets, Competition and Consumers Act (DMCCA).
This upcoming legislation, which aims to introduce tougher controls over tech giants with strategic market power, is expected to come into force later this year. The CMA believes that these new powers will enable it to address issues around app store practices more effectively than under the current legal framework.
Will Hayter, the CMA’s executive director for Digital Markets, said the new regime will allow the regulator to consider applying these powers to issues already identified through their previous investigations. He pointed to the importance of ensuring a fair and competitive app sector in the UK, which would benefit app developers and consumers alike.
The DMCCA, which has faced delays due to political issues, was finally passed in May 2024. Once in effect, the CMA will be able to designate certain tech companies as having “strategic market status” (SMS), which will subject them to new regulatory obligations.
However, it is expected that the process of determining which companies fall under this designation will take some time, delaying any immediate regulatory action against Apple and Google.
Interestingly, the CMA also rejected commitments proposed by Google during the investigation, which aimed to address the Play Store’s billing system.
Developers were dissatisfied with Google’s proposals, particularly regarding the fees they would still be required to pay and the perceived limitations of alternative payment options.
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