The UK competition regulator has closed ongoing cases examining Apple’s App Store and Google’s Play Store as it prepares to roll out new digital markets powers.
The Competition and Markets Authority (CMA) has been investigating whether the Big Tech firms have been unfairly using their dominant positions in the app marketplace sector to force developers into unfavourable terms.
The CMA expressed concern that Apple and Google have been requiring app developers to use their own billing systems for in-app purchases, thereby limiting their choice of payment solutions.
Google responded to the CMA’s concerns by offering to allow alternative payment methods; however, the CMA stated that the proposal did not go far enough, and that, in practice, developers would still be tied to the Google payment system.
The CMA has, however, closed these cases following the passing of the Digital Markets, Competition and Consumers Act in May.
The act further empowers the CMA to reprimand large tech firms that abuse their market dominance. Under the terms of the act, the Digital Markets Unit (DMU) within the CMA can enforce its new powers on companies deemed to hold strategic market status (SMS).
The competition watchdog said if Apple or Google are designated as SMS firms, it will be able to use its expanded powers to go further in its regulatory response.
“Once the new pro-competition digital markets regime comes into force, we’ll be able to consider applying those new powers to concerns we have already identified through our existing work,” said executive director for digital markets at the CMA Will Hayter.
“It’s critical that tech businesses in the UK, including app developers, can have access to a fair and competitive app ecosystem, helping to grow the sector, boost investment and result in better outcomes for UK consumers. These are all factors we are considering before launching our first investigations under the new regime.”
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