The CMA’s probe is very similar to the one pending at the EC level, in a further sign that the UK is about to go after Big Tech in a meaningful way
The CMA means business with Big Tech: The Competition and Markets Authority (CMA) has recently sent repeated signals of its resolve to curb the power of Big Tech. The regulator has had a digital markets strategy in place for two years, which will culminate later this year in the creation of a Digital Markets Unit (DMU) once new legislation is passed. The DMU will oversee a new regime for digital firms designated with Strategic Market Status. In February, the CEO of the authority said that the CMA could soon launch antitrust investigations against Google and Facebook, even before it is given new powers. On Thursday, the CMA opened a probe into Apple over the conditions it imposes on app developers through its App Store.
What is the inquiry about? The CMA has found that several app developers consider the App Store terms and conditions to be unfair. All apps on the App Store have to be approved by Apple, which requires that developers agree to certain terms. Developers can only distribute their apps to iPhones and iPads via the App Store. If they want to offer ‘in-app’ payments or upgrades, they are required to use Apple’s payment system and be subject to the commission Apple charges for each payment (up to 30%). The CMA will now investigate whether Apple has a dominant position on the distribution of apps on Apple’s devices, and whether the conditions it imposes on developers result in less choice or higher prices for consumers.
App stores look increasingly likely to face regulation: The CMA’s investigation into Apple is very similar to that of the European Commission, which was opened in June 2020 after Spotify openly voiced concerns about Apple’s behaviour. Spotify’s CEO claimed that Apple was even limiting Spotify’s ability to communicate with end users and blocking upgrades of the service. Some regulators have said for years that app stores could be a gatekeeper. In France, ARCEP has considered devices as ‘the weak link in achieving an open internet’ since 2017, and fed those considerations into its response to the recent EU Digital Markets Act proposal. Four years later, and the investigations of the CMA and the EC into Apple could vindicate ARCEP’s vision.
Source: https://www.gov.uk/government/news/cma-investigates-apple-over-suspected-anti-competitive-behaviour
