UK Fair Trade Commission Investigates Apple App Store 'In-App Payment' Monopoly Practices

UK CMA Announces Antitrust Regulation Plans
Also Addresses Up to 30% Commission Issue

[Image source=Yonhap News]

[Asia Economy Reporter Minyoung Cha] "Using Apple's market dominance to restrict competition and choice can harm general customers when purchasing or using apps."

Andrea Coscelli, head of the UK's Competition and Markets Authority (CMA), stated this in an interview with CNBC on the 4th (local time), revealing plans for antitrust regulation of the Apple App Store.

Apple has forced developers to use only its payment platform during the development and release of applications (apps) for iPhone and iPad. The high commission fee of up to 30%, known as the so-called "Apple tax," imposed on in-app transactions has also been pointed out as a problem.

Coscelli said, "Millions of consumers use apps daily to check the weather, play games, or order takeout," adding, "Complaints that Apple uses its market position to unfairly restrict competition and choice require a thorough investigation."

Apple plans to cooperate with the CMA's investigation. Apple stated, "The App Store has been an engine driving the success of app developers," adding, "This is also thanks to strict standards applied fairly to all developers, which protect consumers from malware and prevent unauthorized data collection."

Meanwhile, the stance of the UK regulatory authority aligns with the European Union's (EU) ongoing antitrust regulation of Apple's App Store. Although the UK fully withdrew from the EU this year, this can also be interpreted as maintaining close communication with the EU.

The European Commission (EC) is conducting an antitrust investigation into Apple's App Store rules and the Apple Pay mobile wallet. The music streaming service Spotify officially raised the issue by filing an antitrust lawsuit against Apple in March 2019. Spotify criticized, "The Apple tax of up to 30% is problematic," and accused Apple of "hindering business with rules that make it difficult for users to receive discounts."

Disputes continue in the United States, Apple's home country. Last year, Apple removed Epic Games from the App Store after Epic established a separate payment system in protest against Apple's commission policy. Epic Games formed the "Coalition for App Fairness (CAF)" in alliance with other app companies. Well-known developers such as Spotify, Basecamp, Match Group, Tinder, and Hinge participated.

This content was produced with the assistance of AI translation services.