Google and Apple probes dropped by CMA amid pivot to new regime
The UK’s competition watchdog has decided to close two investigations into Google’s Play Store and Apple’s App Store, citing a shift in priorities.
The Competition and Markets Authority (CMA) was investigating whether Google and Apple have been using their app stores to put British app developers at a disadvantage.
It was concerned the tech giants were restricting competition, potentially leading to higher prices and fewer choices for app users.
However, before reaching a final decision on whether Google and Apple violated competition rules, the regulator announced on Wednesday that it would be closing its double probe on the grounds that it “no longer constitutes an administrative priority.”
The CMA said its decision to close the investigations does not mean its concerns were “unfounded or have ceased to exist.
“Nor is the CMA making a decision as to whether there has been an infringement,” it said, adding it will continue to monitor the market conduct of both tech companies and may reopen inquiries in future.
At the same time, the CMA has rejected new commitments proposed by Google that would have given app developers the choice of using alternative payment options to Google Play’s billing system.
But, having consulted app developers, the CMA said it is “not satisfied that Google’s proposed commitments address its competition concerns effectively”.
A Google spokesperson said:“We have engaged with the CMA over the course of many months during their investigation. As part of this, we made a number of significant commitments to further broaden the billing options available to developers through Google Play.
“Android has always allowed flexibility and choice not found on other platforms – including multiple app stores and sideloading, and we deliver persistent and growing value to developers,” they added.
Morning Wire has approached Apple for comment.
It comes as the watchdog recently gained new powers under the Digital Markets, Competition and Consumers Act (DMCC), which received royal assent on 24 May 2024. The DMCC gives the CMA greater power to tackle competition issues in digital markets.
Will Hayter, executive director for digital markets at the CMA, said the regulator will consider how to apply the new powers to concerns it has already identified.
“It’s critical that tech businesses in the UK, including app developers, can have access to a fair and competitive app ecosystem,” he said, “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,” Hayter added.