The UK’s Competition and Markets Authority (CMA) has launched an investigation into whether Apple imposes unfair or anti-competitive terms on its app developers.
The regulator has said it will scrutinise Apple’s 30% ‘app tax’, and assess the company's potential dominance in the app distribution market in the UK and its ability to potentially inflate the costs of hosting applications on its store.
It also plans to investigate claims that Apple “imposes unfair or anti-competitive terms on developers using the App Store, ultimately resulting in users having less choice or paying higher prices for apps and add-ons”.
Apple's marketplace policies have come under intense scrutiny following a disagreement with Fortnite developer Epic Games last month. The game developer and publisher filed a complaint to the European Commission, accusing the tech giant of “abusive conduct” that breaches competition laws. It also filed a lawsuit against the company in the US after its Fortnite game was removed from the App Store.
Epic wasn’t immediately available for comment, but had previously maintained that it “is not seeking damages from Apple”, but “simply seeking fair access and competition that will benefit consumers and developers”.
Commenting on the launch of the investigation, CMA chief executive Andrea Coscelli said that the regulator’s “ongoing examination into digital markets has already uncovered some worrying trends”.
Go further with mobile marketing
Easy steps to get your mobile strategy up-to-speed
“We know that businesses, as well as consumers, may suffer real harm if anti-competitive practices by big tech go unchecked. That’s why we’re pressing on with setting up the new Digital Markets Unit and launching new investigations wherever we have grounds to do so,” he added.
“Millions of us use apps every day to check the weather, play a game or order a takeaway. So, complaints that Apple is using its market position to set terms which are unfair or may restrict competition and choice – potentially causing customers to lose out when buying and using apps – warrant careful scrutiny.”
A CMA spokesperson told IT Pro that, in the case that the regulator finds that Apple had indeed breached competition law, "it can impose a fine up to 10% of Apple worldwide turnover and/or issue legally binding directions, which order a company to do something".
Get the ITPro. daily newsletter
Receive our latest news, industry updates, featured resources and more. Sign up today to receive our FREE report on AI cyber crime & security - newly updated for 2023.
Having only graduated from City University in 2019, Sabina has already demonstrated her abilities as a keen writer and effective journalist. Currently a content writer for Drapers, Sabina spent a number of years writing for ITPro, specialising in networking and telecommunications, as well as charting the efforts of technology companies to improve their inclusion and diversity strategies, a topic close to her heart.
Sabina has also held a number of editorial roles at Harper's Bazaar, Cube Collective, and HighClouds.