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Apple App Store investigated by UK competition watchdog over anti-competitive behaviour

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The UK’s competition watchdog has opened its own probe into Apple’s App Store, joining a number of international regulators looking into the tech firm’s practices.

The Competition and Markets Authority (CMA) said it was opening an investigation after complaints that the iPhone maker’s terms are unfair for app developers.

Apple charges a commission of up to 30 per cent to developers on the value of any transactions users make on apps distributed through its App Store. The apps themselves can only be distributed to Apple devices through the App Store.

Developers have long complained that this gives Apple unfair control and allows it to take a large cut of their revenue.

In 2020, the argument came to a head as Fortnite maker Epic Games tried to avoid Apple’s 30 per cent fee by launching its own in-app payment system. Fortnite was kicked off the store as a result.

The CMA’s investigation will consider whether Apple has a dominant position for distributing apps to its devices in the UK, and if it imposes unfair or anti-competitive terms on developers, ultimately leaving consumers with less choice or with products that are priced higher.

CMA chief executive Dr Andrea Coscelli said: “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.”

The CMA has been ramping up its action on tech firms in recent months, putting forward proposals in December for a new competition regime for digital markets. Last month it warned tech’s biggest companies that it planned to launch a series of investigations this year.

Dr Coscelli said: “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. 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.”

The CMA’s investigation into Apple follows similar moves around the world. The European Union’s antitrust authority opened its own inquiry into App Store policies last year, while a US House Judiciary subcommittee concluded in October that Apple has “monopoly power” over software distribution on iPhones and uses it to generate large profits from the App Store.

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