UK antitrust body that thinks Apple has too much power is to be denied its own powers
The UK antitrust agency that last year ruled that Apple and Google had too much power will now be denied the legal rights it expected.
The UK’s Competition and Markets Authority was expected to receive what’s known as statutory powers. However, it is being reported today that the government has canceled this plan …
Background
Just over one year ago, the UK was the first country to launch an antitrust investigation into Apple’s App Store Terms.
Apple was subject to antitrust investigations into its App Store in various countries, including the USA and Japan. The latest investigation looked at the UK’s controls over iOS apps. Although the European Union has opened three antitrust investigations into App Stores, the UK’s departure from the EU signifies that the UK is not a party to any of these.
The UK’s competition watchdog today announced plans to determine whether the App Store restricts competition. The government announced that the Competition and Markets Authority (CMA) will be running the investigation.
This was followed by another investigation of the wider Apple-Google effective duopoly within the market for mobile apps.
The British government intended to grant statutory powers the CMA.
The British government has announced plans for new antitrust powers that would give it the ability to overrule commercial decisions made by tech giants like Apple. The proposed British powers would be granted to a body called the Digital Markets Unit (DMU), which is part of the Competition and Markets Authority (CMA).
The powers would have allowed the CMA to directly impose rules on tech companies operating in the UK, and to fine them up to 10% of their turnover when rules were breached. This would have been a worrying development for Apple, since the CMA concluded that both Apple and Google do indeed have too much power.
UK antitrust agency CMA will not get the statutory powers
However, the Financial Times reports that plans to grant statutory powers to the CMA have now been abandoned.
Britain has decided to abandon plans to give statutory power to a new technology regulator. This is a blow against global efforts to limit the dominance internet companies […]
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The government’s proposed legislative program does not include a bill that provides statutory support to the Digital Markets Unit (based at the Competition and Markets Authority, CMA), according to the FT.
The Queen’s Speech due on May 10, which will outline the government’s legislative programme for the coming year, is not expected to include a bill that would provide the unit with statutory powers.
If confirmed, this news doesn’t get tech giants off the hook for antitrust matters in the UK. But the CMA won’t be able to directly demand policy changes or impose fines – instead, it will only be able to make recommendations to parliament.
The CMA’s last report is due next month and will recommend the following :
- Making it easier for users to switch between iOS and Android phones when they want to replace their device without losing functionality or data.
- Making it easier to install apps through methods other than the App Store or Play Store, including so-called “web apps.”
- Enabling all apps to give users a choice of how they pay in-app for things like game credits or subscriptions, rather than being tied to Apple’s and Google’s payment systems.
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