Before the new regulation, the UK regulator ended its investigation into Apple (AAPL.US) and Google (GOOGL.US) app stores.
Given the need to consider a new digital competition regime, the UK Competition and Markets Authority (CMA) has closed its existing cases against Google Play and the Apple App Store.
The UK competition regulator extended its preliminary review of Apple (AAPL.US) and Alphabet’s (GOOGL.US) subsidiary Google’s behaviour in their respective app stores in June this year. The cases focused on the rules that require game publishers to use Google Play or Apple’s own payment systems for in-app purchases, and the CMA was concerned that this limited the choice of payment solutions available to publishers and made it harder for them to transact directly with customers.
The regulator said on Wednesday that at the same time, it rejected Google’s commitments in response to its concerns. Google’s proposal would allow app developers to use an alternative paid option to Google Play, known as developer-only billing (DOB) and user choice billing (UCB), to pay for in-app purchases.
However, after consulting with app developers and reviewing the evidence, the CMA said it was not satisfied that Google’s commitments effectively addressed its competition concerns.
The CMA said it had assessed the existing Competition Act rules on managed priority in Google Play and the Apple App Store under the Digital Markets, Competition and Consumer Bill (DMCCA) passed in May, and decided to close these cases at this time.
Will Hayter, executive director of digital markets at the CMA, said, “Once a new pro-competitive digital market regime is in place, we will be able to consider applying these new powers to the issues we have identified through our existing work.”
The regulator said that if Apple or Google were found to have a “strategic market position” in any digital activity in the mobile space, it would be able to use its new powers to consider a wider range of questions than a specific Competition Act investigation, and would also be able to consider what intervention measures (if any) might be needed after any designation.
Earlier this month, Apple updated its app store fee structure for European developers to comply with the Digital Markets Act (DMA) from the European Commission. The changes were mainly focused on how app developers use Apple’s network links to other payment methods to users in their European app stores.

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