U.K. competition watchdog drop probes into Google and Apple app stores

By Louis Goss

British regulator says new law allows it to address issues 'more holistically'

Britain's market watchdog has closed two long-standing investigations into the way Google and Apple run their app stores with a view to addressing its concerns using new powers given to it by the U.K. government in May.

The U.K.'s Competition and Markets Authority on Wednesday said it had closed its probes into Google and Apple over claims the tech giants abused their market positions by setting unfair terms for British app developers using the two firm's respective app stores.

The competition regulator instead warned it may use new powers given to it by the U.K. government via the passing of the Digital Markets, Competition and Consumers Act in May to address its concerns "more holistically" with a view to boosting competition in the app market.

The CMA first opened its investigation into Apple (AAPL) in March 2021 over claims the tech giant had breached the U.K.'s Competition Act, which was first introduced in 1998, by charging a 30% commission on transactions made through its App store

The watchdog later opened a similar probe into Alphabet's Google (GOOGL) in June 2022, over allegations it breached U.K. competition law by obliging app developers to use its own billing system for any in-app purchases.

In May, the U.K. government passed the Digital Markets, Competition and Consumers Act which gives the CMA specific new powers to tackle tech giants' anti-competitive behavior.

Will Hayter, Executive Director for Digital Markets at the CMA, said: "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."

"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 U.K. consumers. These are all factors we are considering before launching our first investigations under the new regime."

-Louis Goss

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08-21-24 0644ET

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