Great Britain: App store antitrust investigation halted – for the time being
The London Competition and Markets Authority has halted a competition review of Apple's App Store that began in 2021. However, it could start again.
App Store on iPhone.
(Image: tre / Mac & i)
Competition and antitrust authorities around the world are currently investigating Apple's App Store offering – whether in the USA, Europe or Asia. At least in the UK, Apple's legal department can now (briefly) breathe a sigh of relief: the Competition and Markets Authority (CMA) has now officially closed an investigation launched in 2021. The investigation concerned whether Apple's conditions for the distribution of iPhone apps were anti-competitive.
New authorization for market watchdogs
In a statement on the closure under case number 60015, the CMA writes that the investigation has been closed due to "administrative priorities". It will continue to monitor Apple's conduct in the market and has not ultimately decided whether Chapter II of UK competition law has been breached. The authority therefore reserves the right to open a new investigation in the future. The decision concerns Apple's subsidiaries Apple Inc., Apple (UK) Limited and Apple Europe Limited in connection with the company's in-app payment system (IAP).
The CMA emphasizes that the new Digital Markets, Competition and Consumers Act (DMCC Act) from 2024 provides new opportunities to conduct investigations –, which is reminiscent of the Digital Markets Act (DMA) applicable in the EU. It could therefore be that the new powers under the DMCC Act "may be more appropriate to investigate this type of conduct [by Apple]".
Old proceedings could be revived
The now closed proceedings began in spring 2021 and data was collected until spring 2022. In March 2022, it was then decided to pursue the case further. The DMCC Act finally became law in the UK in May 2024, which apparently influenced the CMA's decision to close the case. However, with the new tools of the DMCC Act, the CMA could revive its investigation into the App Store at any time.
As with the DMA, the DMCC Act also includes so-called gatekeepers, which in this case are companies with "Strategic Market Status". The state can then regulate these more strictly than others. Apple last managed to fend off another CMA investigation in 2023. At that time, it was about the market dominance of Safari (via WebKit engine constraints) and the former cloud gaming ban.
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