The UK begins investigating Apple into alleged App Store monopoly
© Reuters. FILE PHOTO: The Apple Inc logo hangs at the entrance to the Apple Store on 5th Avenue in New York
(Reuters) – The UK competition authority announced on Thursday that it opened an investigation against Apple Inc (NASDAQ 🙂 after complaining that the iPhone maker’s terms and conditions for app developers are unfair and anti-competitive.
The investigation will examine whether Apple has a dominant position in the distribution of apps on its devices in the UK, according to the Competition and Market Authority (CMA).
Payment policies related to Apple’s App Store have long had complaints from app developers as they have to use the payment system, which charges commissions between 15% and 30%.
The company had also come into conflict with Epic Games, the inventor of the popular game Fortnite, which last year tried to avoid the 30% fee by launching its own in-app payment system that resulted in Apple Banned Fortnite from its business.
The iPhone maker said Thursday it would work with the regulator.
“The App Store has been a success engine for app developers, partly because of the strict standards we have put in place – fair and equally for all developers – to protect customers from malware and prevent widespread data collection without their consent.” Apple said in a statement.
The company is also under investigation for similar reasons by the Dutch competition authorities, who are getting close to a draft decision, Reuters reported last month.
Last year, the European Commission launched an investigation into the iPhone manufacturer about the commission fee for the App Store.
“Complaints that Apple is using its market position to set terms that are unfair or restrict competition and choice – which could potentially result in customers losing out when buying and using apps – require careful consideration,” Andrea said Coscelli, CEO of CMA.
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