UK regulators will investigate Apple for “unfair” App Store terms | Instant News

The UK competition regulator has begun an investigation apple Excessive claims that the company is using its control of the App Store to impose “unfair and anti-competitive” terms on application developers.

This Competition and Market Authority The investigation was announced Thursday morning. It said that it decided to conduct an investigation based on its work in the digital field, “and some developers have reported that Apple’s terms and conditions are unfair and may violate competition laws.”

CMA CEO Andrea Coscelli said: “We have millions of people using apps every day to check the weather, play games or order takeaway food.” “Therefore, regarding Apple’s use of its market position to set up unfair or potentially restrictive competition and Complaints about the selected terms (which may cause customers to lose their way when buying and using the app) require careful review.”

The iOS App Store is the only way to install apps on the iPhone, iPad, and Apple Watch, which means that the term Apple sets for developers has a lot of influence. For example, if a developer sells digital goods through the App Store and must be prohibited from publishing services that require a subscription to work, the developer must pay Apple 15% to 30% of their revenue, unless the subscription can be processed through Apple’s payment Service charges 15% or more. The company believes that these practices are necessary to ensure that the apps downloaded by iPhone owners are safe and reliable.

Apple said: “The App Store we created is a safe and reliable place, allowing customers to download their favorite applications, and provides excellent business opportunities for developers everywhere. In the UK alone, the iOS application economy can provide With hundreds of thousands of jobs, any developer with outstanding ideas can attract Apple customers around the world.

“We believe that in a booming and competitive market, any great idea will flourish. The App Store has always been the engine of success for app developers, partly because we have established strict standards (fair and equal All developers) to protect customers from malware and prevent rampant data collection without their consent. We look forward to working with the UK Competition and Markets Authority to explain our privacy How rights, security, and content guidelines make the App Store a trusted market for consumers and developers.”

This survey is only part of CMA’s extensive survey of the technology sector, which includes the announcement of the establishment of a digital marketing department in November 2020. This organization will be the first of the British government’s attempts to establish a new digital market. The regulatory system of the technology industry.

“Our continued inspection of the digital market has uncovered some worrying trends,” Coscelli added. “We know that if we are not subject to the anti-competitive practices of large-scale technology, both companies and consumers may suffer real harm. This is why we continue to establish a new digital marketing department and conduct new investigations where conditions permit. “

Initially caused by an investigation into the online advertising market, DMU will eventually cover companies with “strategic market positions”, which are defined as “substantial and persistent market forces.” Google and Facebook will almost certainly be supervised by regulators, but it is not clear whether other large technology companies, including Apple and Amazon, will be subject to the same supervision.

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