UK Antitrust Watchdog Closes Apple App Store Investigation, Case to Be Reconsidered Under New Digital Rules Regime

[MacRumors]

The UK's Competition and Market Authority (CMA) today announced it had closed an investigation into Apple's App Store policies, as it expects to consider the concerns under a new digital markets competition regime which is expected to come into force later this year.

Originally initiated in March 2021, the CMA's investigation set out to determine whether or not Apple has a dominant position in connection with the distribution of apps on Apple devices in the UK – and, if so, whether Apple imposes unfair or anti-competitive terms on developers using the ‌App Store‌, such as by charging a 30% commission on transactions.

The watchdog opened a similar probe into Google, which it believed breached UK competition law by making app developers use its own billing system for in-app purchases. The CMA now says it has closed the Competition Act cases into Google's Play Store and Apple's App Store on the grounds of administrative priorities and has not taken any decisions as to whether the Competition Act 1998 has been infringed.

Despite both investigations being closed, the competition regulator says it may use new powers given to it via the UK's new Digital Markets, Competition and Consumers Act to address its concerns "more holistically" with a view to boosting competition in the app market. From the CMA's press release:

In light of recent developments, in particular the passing in May of the Digital Markets, Competition and Consumers Act (DMCCA), the CMA has assessed its existing Competition Act investigation into Google's Play Store and its parallel case into Apple's App Store rules against its administrative priorities and decided to close these cases at this point. Should Apple or Google each or both be designated as having 'strategic market status' in connection with any digital activities in the mobile sector, the CMA will be able to use its new powers to consider the range of issues raised by parties more holistically than it otherwise could under these specific Competition Act investigations. This will also enable the CMA to consider what, if any, interventions may be needed following any designation.

Published in January 2024, the new digital markets competition regime paper gives the CMA the ability to impose requirements on the conduct of firms in digital markets where those firms have been designated as having Strategic Market Status (SMS) – and to impose significant fines against firms if those requirements are breached.

In that paper, the CMA also confirmed it expects to launch around three to four SMS investigations within the first year of the new digital markets competition regime coming into force, which is expected later this year.

Article Link: UK Antitrust Watchdog Closes Apple App Store Investigation, Case to Be Reconsidered Under New Digital Rules Regime

 

[krspkbl]

I'd love if the UK government forced Apple to implement side loading and all the other good stuff EU users get.

"Apple should just leave the UK" there saved you all the trouble

 

[StuBeck]

This is a very administrative heavy position to take. The logical step would be to just move this 3 year investigation under the new ruling, not abandon it and start over in a few months/years/millena.

 

[klasma]

Strategic Market Status (SMS)

Let me guess:
MMS = Monopoly Market Status
RCS = Repressing Competition Status

 

[Mrkevinfinnerty]

So UK gov has wasted years on an investigation that achieved nothing and then closed it so they can pick it up again later on with a different name?

Sounds about right.

 

[Apple Mac Daz]

So UK gov has wasted years on an investigation that achieved nothing and then closed it so they can pick it up again later on with a different name?

Sounds about right.

It’s the U.K Government nothing ever makes sense

 

[mazz0]

How does this fit the narrative that Europeans just hate American tech companies?

 

[2540497]

British bureaucracy at its best I’m afraid. Like the EU, we will issue a fine under predetermined guilt because our public finances are broken and we need a payday from somewhere!

 

[MilaM]

It appears from the reporting, that the new law that is taking effect this fall (DMCCA), will give the government agency more powers. Makes total sense to restart the proceedings later.

I would not expect Apple and Google get off the hook that easily in the UK.

 

[ApostolisApo]

British bureaucracy at its best I’m afraid. Like the EU, we will issue a fine under predetermined guilt because our public finances are broken and we need a payday from somewhere!

The whole world will fine Apple and you 'll still think it's everyone's but Apple's fault 🤷

 

[JapanApple]

Here we go again

 

[Zest28]

Here we go again

Apple could have avoided all this drama by just putting Android on their iPhone’s in the EU and call it a day. If they don’t want an iPhone, you get an Android phone instead.

I predicted other regions will do the exact same thing if Apple gives in to the EU.

And Apple can still continue to get 30% commission, just like Samsung is doing with Android, but without the costs of developing and maintaining iOS.

 

[JapanApple]

Apple could have avoided all this drama by just putting Android on their iPhone’s in the EU and call it a day. If they don’t want an iPhone, you get an Android phone instead.

I predicted other regions will do the exact same thing if Apple gives in to the EU.

And Apple can still continue to get 30% commission, just like Samsung is doing with Android, but without the costs of developing and maintaining iOS.

Well, that is if the EU didn’t have to stick their nose into this.............. It's simple really

 

[contacos]

They will sneak the whole opening up of end to end encryption into this new law I am sure

 

[Mrkevinfinnerty]

Apple could have avoided all this drama by just putting Android on their iPhone’s in the EU and call it a day. If they don’t want an iPhone, you get an Android phone instead.

I predicted other regions will do the exact same thing if Apple gives in to the EU.

And Apple can still continue to get 30% commission, just like Samsung is doing with Android, but without the costs of developing and maintaining iOS.

So avoid any discussion with regulators by installing a competitors OS on their hardware, in the process diluting their brand and eroding trust from the customer base worldwide.

 

[cocky jeremy]

If you're in business and not making at least the same 30% Apple charges, why are you wasting your time?

 

[ReddJive]

my favorite part is how they investigated. Then went well not this time so we will change the law so we can get them next time. I would even believe what was found in this investigation influenced the new law.

governments are just like corporations and change laws, rules, and regulations to suit the situation.

 

[Naraxus]

So in other words, the UK's CMA has decided to table its witchhunt until, much like with the EU cabal, it can invent ******** charges out of thin air to fine Apple over under the guise of "For The Consumer".

This is beyond asinine.

 

[klasma]

The whole world will fine Apple and you 'll still think it's everyone's but Apple's fault 🤷

I mean, literally.

 

[Apple Mac Daz]

The whole world will fine Apple and you 'll still think it's everyone's but Apple's fault 🤷

💯 facts

 

[con2apple]

So UK gov has wasted years on an investigation that achieved nothing and then closed it so they can pick it up again later on with a different name?

Sounds about right.

This is called the "state of justice" and compliance with the law.
If you're American, you won't know that.

 

[VeshSneaks]

I imagine the decision to close the investigations and reopen them later is to avoid any issues with the investigations having started under different legal circumstances. The CMA seems to now have more options available to it that may allow for the new investigations to have a wider scope, so it may be that they want to re-examine the facts of the case based on the new powers.

Honestly, I can only see this as being a positive for consumers. I don't care if Apple loses some of it's precious BILLIONS in App Store revenue because they might not get 30% of every sale of something that happens on an iPhone. The fact they're even going after platforms like Patreon, who themselves only take an 8% cut of the proceeds, shows it's nothing but sheer bloody avarice at this point. They have no part in the entire process, other than the initial app download. They don't host content for Patreon, they didn't process payments for Patreon until they decided to force Patreon into using their payment system. They're just muscling in on the transaction because nothing but governmental intervention can stop them from doing so.

The sooner all consumers can have the option to use a 3rd-party store on iOS, the better.

 

[sw1tcher]

I'd love if the UK government forced Apple to implement side loading and all the other good stuff EU users get.

"Apple should just leave the UK" there saved you all the trouble

You left out the part about how the EU (and UK) need to rein in U.S. tech companies because their countries cannot innovate... and yet U.S. companies like Apple keep gobbling up EU and UK companies before they get too big.

List of mergers and acquisitions by Apple - Wikipedia

en.wikipedia.org

Date - Company - Country
December 17, 2023 - Datakalab - France
March 23, 2022 - Credit Kudos inc - UK
February 7, 2022 - AI Music - UK
August 30, 2021 - Primephonic - Netherlands
January 15, 2021 - Curious AI - Finland
April 3, 2020 - Voysis - Ireland
December 12, 2019 - Spectral Edge - UK
October 3, 2019 - IKinema - UK
March 21, 2019 - Stamplay - Italy
December 7, 2018 - Platoon - UK

etc

 

[The_Gream]

You left out the part about how the EU (and UK) need to rein in U.S. tech companies because their countries cannot innovate... and yet U.S. companies like Apple keep gobbling up EU and UK companies before they get too big.

List of mergers and acquisitions by Apple - Wikipedia

en.wikipedia.org

Date - Company - Country
December 17, 2023 - Datakalab - France
March 23, 2022 - Credit Kudos inc - UK
February 7, 2022 - AI Music - UK
August 30, 2021 - Primephonic - Netherlands
January 15, 2021 - Curious AI - Finland
April 3, 2020 - Voysis - Ireland
December 12, 2019 - Spectral Edge - UK
October 3, 2019 - IKinema - UK
March 21, 2019 - Stamplay - Italy
December 7, 2018 - Platoon - UK

etc

Nice list.

Having just gone through a merger/buyout for the company I work with… were the government had to look over, check, and add clauses to the agreement before they would okay.

So, IMO, the fault of American tech buying up all the foreign tech is the fault of the foreign governments allowing it. Those governments could had said “No”. Heck there is plenty of times this has happened, and the company trying to sell has had to take another route.

 

[thekeyring]

By even considering "Apps on Apple devices" as a category, it sounds like they've made their decision. Does Netflix have a monopoly of distributing content on Netflix?