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Summary
- The Competition and Markets Authority has decided to launch an antitrust probe into Apple’s app store.
- According to various software developers, Apple follows a rigorous approval process for the apps in its store.
- Apple has drawn the ire of many developers for charging fees on in-app transactions.
UK-based competition regulator Competition and Markets Authority (CMA) has launched an investigation into how Apple runs its App store. As per the news reports, app developers have complained that the approval process on iOS app store is unfair and rigorous.
The CMA will investigate various aspects of iOS app store and analyse whether Apple enjoys a dominant position in the choice and distribution of apps on the devices used within the UK.
Earlier also, Apple has been criticised for its business and payment policies. The iPhone maker only allows developers to release iPhone and iPad specific apps through its iOS app store. It has also faced criticism for charging a commission of up to 30 per cent from software developers or customers while downloading apps.
According to CMA CEO Andrea Coscelli, millions of users use and download apps every day for basic daily stuff. So, if Apple is exploiting its market position to set terms, then it is unfair, which is affecting the customers to lose out money while buying and using apps.
In 2020, the EU Commission had floated a similar probe into Apple’s App Store rules and its Apple Pay mobile wallet. In 2019, music-streaming platform Spotify had highlighted unfair measures on iOS app store and its payment platform, Apple Pay. As per news reports, the CMA will get in touch with its EU counterparts during the investigation.
CMA’s Coscelli added that their investigation has found some worrying trends in the digital markets, and consumers may be harmed due to anti-competitive practices.
Various companies such as video game creator Epic Games, Spotify and Match Group have been vocal about Apple’s alleged unfair policies.
Apple spokesperson has reportedly said the company would help CMA during the probe and that it believes in competitive markets.
The tech clampdown
Not only Apple, many US-based tech giants are facing antitrust probes in different countries. The EU is already working on a detailed plan to regulate the Big Techs with service reforms. The UK is also planning to introduce its new digital rules to deal with such issues.
Share performance
Apple Inc (NASDAQ:AAPL) shares in pre-market were trading at US $122.41, up by 0.20 per cent as of 4 March at 8:24 am ET.
