The CMA has been investigation both tech giants for years, but is closing the cases so it can focus on upcoming regulation that will give it new and expanded powers.
The UK’s Competition and Markets Authority (CMA) is closing two investigations into Google and Apple, giving the tech giants a reprieve before new digital rules come into force.
The CMA was investigating both Apple’s App Store and Google’s Play Store, to assess their potential impact on competition in the UK and the rules these companies have for developers using these app stores.
Both tech giants have faced scrutiny for years over the dominance of these platforms on mobile devices, with concerns that they limit competition and put charges on developers. The CMA has investigated both app stores for years.
But in a new statement, the CMA said it is closing both cases while it prepares for the release of a new digital markets competition regime in the UK. This legislation will grant the CMA new and expanded powers when it comes to dealing with digital markets.
The UK watchdog said that – if these app stores are designated as having “strategic market status” under these new rules – it will be able to use new powers more “holistically” if it launches new investigations against them.
“Once the new pro-competition digital markets regime comes into force, we’ll be able to consider applying those new powers to concerns we have already identified through our existing work,” said Will Hayter, CMA executive director for digital markets.
“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. These are all factors we are considering before launching our first investigations under the new regime.”
The decision to close these cases comes after the CMA said it was not satisfied that Google’s proposed commitments would address its Play Store competition concerns.
Earlier this month, Apple made changes to how its App Store operates in the EU, after facing accusations that it is breaching the bloc’s Digital Markets Act. But these new rules still faced criticism from other companies such as Epic Games and Spotify.
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