Apple and Google can now breathe a sigh of relief as the U.K. competition watchdog announced on Wednesday that it is closing two investigations into their respective mobile app ecosystems, citing administrative priorities.
The U.K. regulator had been looking into Apple’s distribution of apps on iOS and iPadOS devices, as well as Google’s conduct around app distribution on Android devices since March and June of 2021 respectively. The focus was on terms and conditions governing developers’ access to App Store and Play Store. Concerns were raised that these terms may unfairly limit developers’ choices.
While the Competition and Markets Authority (CMA) had previously found significant concerns about the mobile duopoly, both probes have been closed without any actions taken.
However, Apple and Google’s relief may be short-lived as the CMA plans to utilize new competition powers to apply special abuse controls on tech giants with strategic market power.
The CMA stated in a press release that it will use the incoming digital markets regime to address concerns related to app stores and mobile ecosystems. It hinted that Apple and Google are likely to be the first targets for special abuse controls.
Will Hayter, executive director for digital markets at the CMA, emphasized the importance of a fair and competitive app ecosystem in the UK to benefit app developers and consumers.
The UK’s digital markets regime, delayed due to legislative issues, is expected to come into force later this year. Once in effect, the CMA will have the power to regulate Big Tech companies like Apple and Google.
The CMA has closed the investigations into Google’s Play Store and Apple’s App Store rules for now, but it may reopen them if Apple or Google are designated as having strategic market status.
The DMCCA requires the CMA to undertake investigations to determine strategic market status before any crackdown on Big Tech can occur.
The CMA rejected Google’s proposals to allow alternative payment methods on the Play Store, indicating a potential tougher approach towards platform operators under the new regime.
The CMA’s future interventions on designated tech giants will be closely monitored, as the regulator has the authority to make tailored interventions based on specific platforms and issues.
While the EU’s Digital Markets Act already applies to Apple and Google, the UK is still behind in addressing platform power compared to the EU.
