The Competition and Markets Authority (CMA) has launched a probe into Apple’s App Store over allegations that the terms and conditions violate competition law.
“Millions of us use apps every day to check the weather, play a game or order a takeaway,” Andrea Coscelli, chief executive of the CMA, said in a press release on Thursday (March 4). “So, complaints that Apple is using its market position to set terms that are unfair or may restrict competition and choice — potentially causing customers to lose out when buying and using apps — warrant careful scrutiny.”
The App Store is the only way for developers to distribute third-party apps on Apple devices, and some have said that Apple’s terms and conditions are unfair. In order for an app to gain entry to the App Store, it has to first be approved by Apple. Before that can happen, developers have to agree to the terms, which include limiting the app’s distribution to the App Store only. Further, in-app sales can only be processed with Apple’s payment system, and commissions charged to developers can be as high as 30 percent.
The CMA’s probe will look into how Apple distributes apps on its devices, what terms and conditions developers have to abide by, and whether Apple is behaving in an anti-competitive manner. The investigation was launched after several developers complained about Apple’s anti-competitive terms, as well as the CMA’s work in the country’s digital sector.
“Our ongoing examination into digital markets has already uncovered some worrying trends. We know that businesses, as well as consumers, may suffer real harm if anti-competitive practices by Big Tech go unchecked,” according to the post.
Epic Games, maker of Fortnite, launched an antitrust complaint against Apple in the European Union, accusing the tech giant of purposely executing anti-competitive restrictions. The February complaint also alleges that Apple is the sole gatekeeper of its operating system and makes rules that benefit itself.
The Coalition for App Fairness said in September 2020 that it would lobby for legal and regulatory changes regarding the operation of Big Tech app stores and the fees they charge. The nonprofit group launched in August 2020 to advance change. Members include Spotify, Match Group and Epic Games, among others.
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