The UK competition authority announced Thursday that it had opened an investigation against Apple Inc after complaining that the iPhone maker’s terms and conditions for app developers are unfair and anti-competitive.
The Competition and Markets Authority (CMA) announced that it will review Apple’s position with regard to the proliferation of apps on their iPhones, iPads and other devices in the UK.
Payment policies related to Apple’s App Store have long sparked complaints from app developers as they have to use the payment system, which charges commissions between 15 and 30 percent.
Apple responded that it looked forward to working with the CMA to explain how “privacy, security and content guidelines have made the App Store a trusted marketplace for consumers and developers.”
The news comes, however, as Apple is also facing an antitrust investigation by the European Commission on its App Store while the tech titan remains embroiled in a fierce US legal battle with Fortnite maker Epic Games.
The App Store is the only way for developers to distribute their apps to the public for use on the US company’s devices.
“The investigation by the CMA will examine whether Apple has a dominant position in connection with the distribution of apps on Apple devices in the UK,” said a statement from the UK regulator.
Last year, the European Commission launched an investigation into the iPhone manufacturer about the commission fee for the App Store.
Influence on choice and price
The CMA will also examine “whether Apple is imposing unfair or anti-competitive conditions on developers using the App Store, ultimately resulting in users having less choice or paying higher prices for apps and add-ons.”
Apple must first approve all apps before putting them on the App Store, and developers must agree to certain terms.
“The investigation was triggered by the CMA’s own work in the digital sector as well as several developers who reported that Apple’s terms and conditions are unfair and could violate competition law,” the regulator added.
The CMA said complaints also highlighted that Apple needed “in-app” features, add-ons and upgrades to use the US group’s payment system, rather than any alternative.
Apple charges developers a commission of up to 30 percent for initial app downloads and updates, according to the CMA.
“Millions of us use apps every day to check the weather, play a game or order a snack,” said Andrea Coscelli, CEO of CMA.
“Complaints that Apple is using its position in the market to set terms that are unfair or can limit competition and choice – potentially causing customers to lose out when buying and using apps – require careful consideration.”
Fornite manufacturer’s Apple feud
The news of the British investigation comes two weeks after Epic Games – known for the hugely popular online role-playing game hit Fortnite – filed a complaint against Apple with the EU antitrust authorities and deepened the bitter feud with the iPhone manufacturer via its App Store Has.
Apple and Epic have also fiercely argued over whether Apple’s strict control over the App Store and its 30 percent cut in sales are abusive.
That dispute took a dramatic turn last August when Apple banned Fortnite, one of the world’s most popular games, from its app store after Epic released an update avoiding revenue sharing with the iPhone maker.
The global war over the App Store has also spread to Facebook, whose CEO Mark Zuckerberg accuses Apple of imposing rules on external developers that do not apply to its own services.
