The UK’s Competition and Market Authority (CMA) today announced that it has closed its investigation into Apple’s App Store policies. However, the investigation may soon be resumed under a new digital markets competition regime later this year.
The CMA’s investigation kicked off in March 2021, with the intention of determining whether or not Apple has a dominant position in connection with the distribution of apps on Apple devices in the UK. Also, the investigation looked into whether or not Apple imposes unfair or anti-competitive terms on developers in the App Store, including the 30% commission Apple charges on transactions.
The CMA also opened a similar probe in Google’s Play Store. The CMA now says it has closed the Competition Act investigations into both app stores on the grounds of administrative priorities and has not yet made any decisions as to whether either company has infringed the Competition Act of 1998.
Both investigations may resume later this year, as the competition regulator says it may investigate using new powers given to it via the UK’s new Digital Markets, Competition and Consumers Act.
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.
The new digital markets competition regime paper, published in January 2024, allows the CMA to impose regulations on the conduct of firms in digital markets when they have been designated as having Strategic Market Status (SMS). The CMA is also allowed to impose significant fines against firms if those requirements are not met.
The CMA says it expects to launch three or four SMS investigations within the first year of the new digital markets competition regime, which is expected to come into force later this year.