UK Antitrust Watchdog to Investigate Apple's App Store Policies [Updated]

[MacRumors]

Today the United Kingdom's Competition and Market Authority (CMA) launched an official investigation into the distribution of apps on iOS and iPadOS devices in the U.K. and the terms and conditions governing the platform.

In September of last year, the authority launched an initial inquiry into developers' complaints about Apple's App Store and so-called "anti-competitive" practices. CMA is now wrapping up its initial inquiry to launch an official investigation under Chapter II of the 1998 Competition Act.

Chapter II relates to a specific company or organization using its domain position within a particular market or industry to limit competition and further enhance its position. In recent months, developers, motivated mainly by Epic Games, have accused Apple of using its dominant position on its platforms and the platform to hinder competition.

The authority says that it has "reasonable grounds" to believe that Apple has broken competition law in some form under the Competition Act of 1998.

The CMA says that its investigation will 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." Andrea Coseclli, the Chief Executive of CMA, says that as the world relies on apps every day, a complaint that Apple is using its position to limit competition and choice calls for "careful scrutiny."

As part of its investigation, the CMA will probe into Apple's 30% commission for in-app purchases. Apple requires developers to use its own App Store in-app purchasing system for purchases made within apps. As part of the system, Apple gets a 30% commission for any purchase made. Developers have voiced concern that the commission is too high, and as a result, Apple announced a lower 15% commission for qualifying, small-indie developers.

Update: Apple provided MacRumors with the following statement regarding the CMA's investigation:

We created the App Store to be a safe and trusted place for customers to download the apps they love and a great business opportunity for developers everywhere. In the UK alone, the iOS app economy supports hundreds of thousands of jobs, and any developer with a great idea is able to reach Apple customers around the world.

We believe in thriving and competitive markets where any great idea can flourish. The App Store has been an engine of success for app developers, in part because of the rigorous standards we have in place — applied fairly and equally to all developers — to protect customers from malware and to prevent rampant data collection without their consent. We look forward to working with the UK Competition and Markets Authority to explain how our guidelines for privacy, security and content have made the App Store a trusted marketplace for both consumers and developers.

Article Link: UK Antitrust Watchdog to Investigate Apple's App Store Policies [Updated]

 

[Moakesy]

Quick, there's a bandwagon....lets jump on it!!

 

[cardfan]

Good news for apple users.

 

[Cleartz]

Quick, there's a bandwagon....lets jump on it!!

Yeah, it sure seems that way! I wonder what country is next (or U.S. state)?!

 

[SD449]

Good news for apple users.

This is the complete opposite.

The simplicity and safety of the AppStore is the reason for its HUGE success

I let my daughter spend far far too much on Roblox, most of which goes through the AppStore even though she can get more ‘blox for her buck’ online. She understands this and still prefers the AppStore due to it’s simplicty.

 

[tollickd]

As a shareholder the UK and go and jump of a cliff!

 

[Mike_Trivisonno]

Maybe Apple could drop the fees for in-App purchases and just take a bite out of the initial sale. They'd still be making plenty of money.

 

[NightFox]

It's easy to let subjectivity get in the way of a story like this, but the CMA is obliged to investigate cases where a company may be breaking the law (Competition Act 1998) and this investigation is doing exactly that, just trying to establish whether an offence has been committed or not. Of course, people might not agree with the law, but this is a law that generally works very well in the interests of the consumer.

 

[makitango]

How about just allowing apps on the device that are sourced from outside the App Store? Like on macOS.
This way the App Store can stay a safe and trusted place while also letting the user decide what software they run, and not ask for Apple‘s opinion all the time.

 

[steve09090]

The authority says that it has "reasonable grounds" to believe that Apple has broken competition law in some form under the Competition Act of 1998.

"In Some Form" doesn't mean they would change anything of any great substance.

How about just allowing apps on the device that are sourced from outside the App Store? Like on macOS.

I enjoy that my iDevice is almost completely safe. Remember that Android Malware has increased vastly over the past 12 months, whereas there are no known malware currently on the iPhone that hasn’t been jailbroken as far as I am aware (not withstanding there are known vulnerabilities that haven’t yet been acted upon).

 

[LeeW]

It's easy to let subjectivity get in the way of a story like this, but the CMA is obliged to investigate cases where a company may be breaking the law (Competition Act 1998) and this investigation is doing exactly that, just trying to establish whether an offence has been committed or not. Of course, people might not agree with the law, but this is a law that generally works very well in the interests of the consumer.

This, that the CMA is investigating means nothing, it is doing what it is supposed to do. Will they force Apple to do anything differently? Unlikely unless there is there compelling evidence that forces them into action and so far nothing to suggest that.

 

[penx]

whether or not Apple has a dominant position in "connection with the distribution of apps on Apple devices in the UK

Is this something that needs investigation? Is anyone arguing that they don't?

 

[Agit21]

This is the complete opposite.

The simplicity and safety of the AppStore is the reason for its HUGE success

I let my daughter spend far far too much on Roblox, most of which goes through the AppStore even though she can get more ‘blox for her buck’ online. She understands this and still prefers the AppStore due to it’s simplicty.

It's funny how no one sees the openness of MacOS as a problem.

 

[Psychicbob]

Following the rhetoric of the EU. No need to do that now as we have left.

 

[rp2011]

Apple is nowhere a monopoly and it’s market share is dwarfed by Android, but it has has grown so large and powerful that it rubs people the wrong way. The changes regulators are asking of Apple are actually the reason people choose Apple. I switched from Android for the very reason of malware running amok, even though it is almost unstoppable on any platform.

 

[Appleman3546]

With so many different investigations and lawsuits on the App Store, I think it is time for Apple to come up with a plan b for iOS 15...

 

[steve09090]

It's funny how no one sees the openness of MacOS as a problem.

You can’t put the genie back in the bottle.

 

[CrashSpyroXP]

I wonder why they're treating Apple's ecosystem as a separate industry. This is exactly why different operating systems and app marketplaces exist. It's the consumer's decision to pick the one that suits them best, and the developer's decision to develop for platforms that sustain their business. If they dislike Apple so much and think they're being taken advantage of, they should pull their apps out of the App Store and develop for Android and Windows instead.

 

[Glideslope]

So much for the UK shedding it’s overreaching regulatory EU Mind Manipulation post Brexit.

 

[GeoStructural]

It's easy to let subjectivity get in the way of a story like this, but the CMA is obliged to investigate cases where a company may be breaking the law (Competition Act 1998) and this investigation is doing exactly that, just trying to establish whether an offence has been committed or not. Of course, people might not agree with the law, but this is a law that generally works very well in the interests of the consumer.

You are asking too much for the average MR user, to many of them Apple is above the law, never at fault, privacy paradise and can get away with anything.

The reality is that Apple must comply with competition laws, if they offer a marketplace (App Store) they must do so fairly, it doesn’t matter if they created it or not.

 

[gnasher729]

In the UK, TenCent, owner of Epic, is also strongly suspected of industrial espionage. Just google "Tencent uk espionage".

 

[gnasher729]

Is this something that needs investigation? Is anyone arguing that they don't?

The real question is whether it matters (strong market position on iPhone devices), since there is no "iPhone" market, but a "mobile phone" market.

 

[matrix07]

It's funny how no one sees the openness of MacOS as a problem.

iPhone using iOS, not macOS.

 

[Scipster]

iPhone using iOS, not macOS.

Right, so if the idea behind the walled garden on iOS/iPadOS is that it makes those devices more safe and secure... does this mean my Mac is not safe to use? Am I exposing myself to security and privacy risks by using a Mac? 😳

 

[LV426]

It's funny how no one sees the openness of MacOS as a problem.

I for one see it as a potential problem. Which is why I have the default option selected to only accept apps from the App Store.

I have broken this rule a couple of times.
1. I purchased an animation program, for a bit of fun. It installed all manner of interfering items on the menu, and was phoning home all the time. Deleted, for these reasons.
2. Drivers and support software for an audio interface. I'd have been a lot happier if it could have been accomplished through the App Store, so thumbs down for the vendor. I paid for the hardware, not the drivers.