UK competition watchdog launches investigation into Apple over App Store

The UK's competition watchdog has launched an investigation into Apple over claims that its terms and conditions for app developers are unfair and anti-competitive.

In the latest attempt by regulators worldwide to challenge tech giants, the Competition and Markets Authority (CMA) said on Thursday that it is to look into concerns that Apple abuses its dominant position over the distribution of apps on its devices.

Apple controls the App Store. On Apple devices, the store is the only way for developers to distribute and consumers to download apps.

The CMA said it will seek to establish if Apple has acted unfairly, or whether it restricted consumer choice or led to people paying more than necessary for products.

Apple is already facing antitrust investigations by the European Commission.

Chief executive, Andrew Coscelli, said complaints of the nature of those received "warrant careful scrutiny".

He said: "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.”

Back in December the CMA released its recommendations for the establishment of a new UKDigital Markets Unit within the watchdog. CMA bosses want the unit to have legal powers, and want to be able to issue tech giants with tailored rules in a bid to "proactively shape" their behaviour.

In a statement, Apple said: "We created the App Store to be a safe and trusted place for customers to download the apps they love and a great business opportunity for developers everywhere.

"In the UK alone, the iOS app economy supports hundreds of thousands of jobs, and any developer with a great idea is able to reach Apple customers around the world.