CMA Closes Big Tech Investigations Ahead of New Powers
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Loading... - Mandisa Aziz
- 26 Aug 2024
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The UK's Competition and Markets Authority (CMA) has closed its ongoing investigations into Apple's App Store and Google's Play Store, citing the upcoming implementation of new digital markets powers.
The CMA had been examining whether Apple and Google were abusing their dominant positions in the app marketplace sector by forcing developers into unfavourable terms. Specifically, the regulator was concerned that the tech giants were requiring developers to use their own billing systems for in-app purchases, limiting their choice of payment solutions.
Google had offered to allow alternative payment methods, but the CMA deemed the proposal insufficient, stating that developers would still be tied to the Google payment system.
The closure of the investigations comes after the passage of the Digital Markets, Competition and Consumers Act in May, which grants the CMA new powers to regulate large tech firms that abuse their market dominance. The Digital Markets Unit (DMU) within the CMA can now enforce its powers on companies deemed to hold strategic market status (SMS).
The CMA has indicated that if Apple or Google are designated as SMS firms, it will use its expanded powers to address the concerns identified in the closed investigations. Executive director for digital markets at the CMA, Will Hayter, stated that the regulator will consider applying its new powers to ensure a fair and competitive app ecosystem, benefiting UK consumers and the tech industry as a whole.
The closure of the investigations and the upcoming implementation of new digital markets powers mark a significant shift in the regulatory landscape for Big Tech firms in the UK. The CMA's new powers will enable it to take a more proactive approach in promoting competition and fairness in the digital markets, potentially leading to better outcomes for consumers and developers.
