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21.08.2024 | 🇬🇧 UK competition authority
The CMA has closed its Competition Act cases into Google's Play Store and Apple's App Store to prepare for the implementation of a new digital markets competition regime. The regulator is concerned about the market positions of Google and Apple in setting terms that may harm UK app developers and restrict competition.
The cases focused on rules requiring app developers to use Google Play's or Apple's billing systems for in-app purchases, limiting developers' payment choices and direct customer interactions. Google's proposed commitments to address concerns were rejected by the CMA, as they were deemed insufficient to effectively tackle competition issues.
Feedback from app developers indicated that Google's proposals did not go far enough in allowing alternative payment methods, as developers would still be tied to the Google payment system. The CMA's decision to close the cases aligns with the passing of the Digital Markets, Competition and Consumers Act (DMCCA), granting the regulator new powers to address competition issues more comprehensively.
Under the new regime, the CMA plans to launch investigations into firms with Strategic Market Status (SMS) and impose requirements on their conduct in digital markets. The regulator aims to ensure a fair and competitive app ecosystem in the UK, benefiting app developers, consumers, and the tech sector.
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