The UK's Competition and Markets Authority today announced it is to investigate Apple over the terms and conditions it sets app developers in order to use the App Store and distribute to Apple devices and as to whether this constitutes a breach of the UK's Competition Act of 1998.

The statement on the UK government website states the investigation was brought about on the back of the CMA's own investigation as well "several developers reporting that Apple’s terms and conditions are unfair and could break competition law." It is not clear at this point which developers are the complainants.

The complaints are said to focus on two key issues that have surfaced in other cases and legislations in other regulatory jurisdictions worldwide, notably that, "the terms that mean they can only distribute their apps to iPhones and iPads via the App Store" and also "that certain developers who offer ‘in-app’ features, add-ons or upgrades are required to use Apple’s payment system, rather than an alternative system."

The CMA will investigate Apple and whether it has a dominant position in the distribution of apps to Apple devices in the UK and subsequently if Apple imposes unfair terms on developers using the App Store.

Andrea Coscelli, Chief Executive of the CMA said "Millions of us use apps every day to check the weather, play a game or order a takeaway. So, complaints that Apple is using its market position to set terms which are unfair or may restrict competition and choice – potentially causing customers to lose out when buying and using apps – warrant careful scrutiny.

Our ongoing examination into digital markets has already uncovered some worrying trends. We know that businesses, as well as consumers, may suffer real harm if anti-competitive practices by big tech go unchecked. That’s why we’re pressing on with setting up the new Digital Markets Unit and launching new investigations wherever we have grounds to do so."

March 4th, 2021