The UK’s Competition and Markets Authority (CMA) has suspended its Apple’s App Store investigation, which means the CMA will change its approach to regulating tech giants. This decision comes as the UK prepares to implement new digital market laws, which are expected to take effect this fall. Last week, a similar investigation in India was also put on hold, but for completely different reasons.
Under the forthcoming Digital Markets, Competition, and Consumers Bill, the CMA will have the authority to impose fines for rule violations, which can lead to up to 10% of a company’s global annual revenue.
Unlike the EU’s uniform approach, the UK’s new framework will allow for targeted investigations of specific activities by companies designated as having “strategic market status.” For a company like Apple to be considered part of this group, it must show it has a strong position in the UK’s digital market, be important in a strategic way, and earn a certain amount of money.
The CMA hasn’t decided where to start focusing under the new rules, but it looks like app stores will be one of its first points of interest. Will Hayter, who’s in charge of Digital Markets at the CMA, stressed how crucial it is to have a fair and competitive environment for apps.
It’s critical that tech businesses in the UK, including app developers, can have access to a fair and competitive app ecosystem, helping to grow the sector, boost investment and result in better outcomes for UK consumers.
This regulatory shift could have significant implications for Apple’s App Store practices in the UK and can lead to more tailored scrutiny of its market position and policies in the near future. Google has also been affected by this. We will keep you updated on what happens next on this Apple App Store investigation.
More here.