The UK Competition and Markets Authority (CMA) announced that Apple Inc. (AAPL.US) and Google’s parent company Alphabet (GOOGL.US) have committed to a series of adjustments to their app stores to ensure fairness for developers and consumers. This is the first time large tech companies have made such commitments since the UK’s digital market rules came into effect.
The CMA stated that it has sought feedback from market participants regarding the voluntary commitments made by both companies on data collection, app ranking methods, and interoperability. The agency said these changes will ensure app developers are offered “more fair terms” and enable other companies to compete with Apple’s digital wallet business.
This announcement marks the first substantial change made by US tech companies following the implementation of the UK’s digital market regime last year. An Apple spokesperson said, “The commitments announced today enable Apple to continue advancing important privacy and security innovations for users and create significant opportunities for developers.”
Previously, the CMA identified the two companies as engaging in a duopoly and designated them as having a “strategic market position” in the mobile platform market—essentially a regulatory framework designed to constrain the behavior of tech giants. Under this rule, the CMA can impose behavioral requirements on the companies, including making it easier for users to download apps and make payments outside of Apple and Google’s proprietary platforms.
Any investigation could open the door to further measures such as enforcement orders and fines to promote competition in the mobile ecosystem market. The CMA’s research found that the app economy in the UK accounts for approximately 1.5% of GDP, with Apple and Google’s mobile platforms operating on nearly all mobile devices.
The two companies will implement these changes starting in April. A Google spokesperson stated that its app store practices are “fair, objective, and transparent,” and that these commitments will address the CMA’s concerns through a collaborative approach.
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Apple(AAPL.US) and Google(GOOGL.US) commit to the UK regulators to modify app store rules to alleviate antitrust concerns
The UK Competition and Markets Authority (CMA) announced that Apple Inc. (AAPL.US) and Google’s parent company Alphabet (GOOGL.US) have committed to a series of adjustments to their app stores to ensure fairness for developers and consumers. This is the first time large tech companies have made such commitments since the UK’s digital market rules came into effect.
The CMA stated that it has sought feedback from market participants regarding the voluntary commitments made by both companies on data collection, app ranking methods, and interoperability. The agency said these changes will ensure app developers are offered “more fair terms” and enable other companies to compete with Apple’s digital wallet business.
This announcement marks the first substantial change made by US tech companies following the implementation of the UK’s digital market regime last year. An Apple spokesperson said, “The commitments announced today enable Apple to continue advancing important privacy and security innovations for users and create significant opportunities for developers.”
Previously, the CMA identified the two companies as engaging in a duopoly and designated them as having a “strategic market position” in the mobile platform market—essentially a regulatory framework designed to constrain the behavior of tech giants. Under this rule, the CMA can impose behavioral requirements on the companies, including making it easier for users to download apps and make payments outside of Apple and Google’s proprietary platforms.
Any investigation could open the door to further measures such as enforcement orders and fines to promote competition in the mobile ecosystem market. The CMA’s research found that the app economy in the UK accounts for approximately 1.5% of GDP, with Apple and Google’s mobile platforms operating on nearly all mobile devices.
The two companies will implement these changes starting in April. A Google spokesperson stated that its app store practices are “fair, objective, and transparent,” and that these commitments will address the CMA’s concerns through a collaborative approach.