The UK has launched a probe into suspected anti-competitive behavior in regard to Apple’s App Store, the latest in a series of investigations of the company.
What’s the problem?
That an investigation has been announced is not the same as declaring guilt. The UK Competition and Markets Authority (CMA) explains: “No decision has yet been made on whether Apple is breaking the law.”
“The CMA’s investigation will consider whether Apple has a dominant position in connection with the distribution of apps on Apple devices in the UK — and, if so, whether Apple imposes unfair or anti-competitive terms on developers using the App Store, ultimately resulting in users having less choice or paying higher prices for apps and add-ons,” the agency said.
The UK Competition and Markets Authority (CMA) says its enquiry follows complaints from “several developers” who claim Apple’s conditions are unfair and break competition law. They’re unhappy because apps must be approved by Apple and developers must agree to certain terms to do business on the platform the company has built.
The CMA is also questioning the commission Apple charges developers of up to 30% for sales on its store.
What they said
In a statement, CMA Chief Executive Andrea Coscelli said:
“Millions of us use apps every day to check the weather, play a game or order a takeaway. So, 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.”
The European Commission currently has four open antitrust probes into Apple, including three investigations into the App Store.
What happens next?
The investigative process is quite formal. Investigators are now equipped with formal information-gathering powers to equip the probe. This initial inquiry is expected to extend into September and will include requests for written information, interviews, and possibly even investigators searching Apple’s premises to get information.
In the event sufficient evidence of an infringement is found, the CMA will set out its provisional findings, with evidence, and propose both remedial action and penalties. Apple then gets the right to reply, after which a final decision will be reached with a right of appeal.
It’s a lengthy process.
What might Apple think?
Apple CEO Tim Cook has discussed scrutiny and big tech to the extent that I think he sees scrutiny coming. He recently told shareholders, “scrutiny is always fair,” but argued that Apple does not dominate in any industry in which it works.
It’s important to note that whatever decisions regulators reach will also impact the company’s competitors, crafting a level playing field within which to do business.
The company is also clear that it is built on the marriage between hardware and software: “The kind of things that we love to work on are those where there’s a requirement for hardware software and services to come together because we believe that the magic really occurs at that intersection,” Cook said during the most recent financial call.
To my mind, Apple will argue that its platform is a unique invention that belongs to, and is made by, a company that consists of both hardware and software.
Among other positions it will take, it will likely argue:
- It is not the biggest phone maker, tablet maker or computer maker in its markets.
- There are alternative platforms developers can choose.
- Side loading of apps may damage customer security and the customer experience.
- It has recently moved to change its App Store fees.
- Its models have enabled businesses across the globe.
- App Store developers have earned more than $155 billion in App Store sales since 2008.
- It is not unique in offering platform-focused App Stores.
- Most such stores take around the same commission.
- And it doesn’t demand exclusivity.
What Apple says
Apple’s most recent Form 10-k regulatory report has plenty of sections concerning regulation, including the following statement:
“The technology industry, including, in some instances, the Company, is subject to intense media, political and regulatory scrutiny, which exposes the Company to government investigations, legal actions and penalties. For example, the Company is subject to antitrust investigations in various jurisdictions around the world, which can result in legal proceedings and claims against the Company that could, individually or in the aggregate, have a materially adverse impact on the Company’s financial condition and operating results. In addition, if enacted, legislative and other proposals to further regulate technology companies could result in changes to the Company’s business, including requiring the Company to modify its product and service offerings, limiting the Company’s ability to invest in strategic acquisitions, or affecting the Company’s business relationships with other technology companies, and could have a materially adverse impact on the Company’s financial condition and operating results. Further, the Company’s business partners are or may become subject to litigation that, if resolved against them, could affect the Company’s relationships with these business partners and have a materially adverse impact on the Company’s financial condition and operating results. There can be no assurance that the Company’s business will not be materially adversely affected, individually or in the aggregate, by the outcomes of such investigations, litigation or changes to laws and regulations in the future.”
What might happen
So, what’s the likely outcome?
Governments tend to be 10 steps behind reality, and in the case of Big Tech they seek high profile targets which will make them seem to be acting tough.
Apple is one of the highest profile targets. I suspect the inquiries will coalesce around setting arbitrary limits to App Store fees.
I can also imagine a compromise around some form of sandbox in which third-party application installs may be suggested, but I expect Apple to prevail in insisting on the right to protect platform security — particularly in a digital age characterized by state-sponsored cyberattacks.
Personally, I think Apple has a stronger argument in terms of how it invests in enabling third-party developers on its platform by providing the APIs and tools they use to create software than developers have to demand such access.
If Apple didn’t make these platforms, they wouldn’t exist. If it has any form of monopoly, it is over its own intellectual product and should have a right to decide what products get stored in that space.
Governments seek ways to punish high profile Big Tech names that don’t actually involve raising tax rates against billionaires, so it’s not impossible for things to go awry. It’s easier to make life hard for Apple than it is to fight the climate crisis or protect people against hunger or the COVID-19 pandemic, after all.
Please follow me on Twitter, or join me in the AppleHolic’s bar & grill and Apple Discussions groups on MeWe.
Copyright © 2021 IDG Communications, Inc.
If you want to get a good deal from this post then you have to apply these techniques
to your won website.
You really make it appear so easy along with your presentation but
I find this topic to be really one thing which I believe I would by no means understand.
It sort of feels too complex and very wide for me.
I am looking ahead on your next post, I’ll try to get the hold of
it!
Hey there! Do you know if they make any plugins to assist
with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good results.
If you know of any please share. Thank you!
my web-site http://usedtiresbrowardcounty.com/
Appreciation to my father who shared with me about this webpage, this webpage is in fact
remarkable.
Here is my page lysto-forum.tue-image.nl
Well I really liked studying it. This tip offered by you is very constructive for proper planning.
my blog post clubriders.men
Good day I am so happy I found your blog page, I really found you by
mistake, while I was looking on Google for something else,
Regardless I am here now and would just like to say cheers for
a incredible post and a all round exciting blog (I also love the theme/design),
I don’t have time to browse it all at the minute but I have saved it
and also added your RSS feeds, so when I have time I will be back to read
a great deal more, Please do keep up the awesome work.
Also visit my site Playboy2 Ios Download
Actually when someone doesn’t know then its up to
other users that they will assist, so here it occurs.
Also visit my page: home club suncity download
I blog often and I truly appreciate your information. The article has truly peaked
my interest. I will bookmark your site and keep checking for new information about once a week.
I subscribed to your Feed too.
My web site … online casino real money (https://bgoldbet.com/onlineslot.html)
Saya telah menjelajah online lebih dari 3 jam
hari ini, namun saya tidak pernah menemukan artikel menarik seperti milik Anda.
It is cukup berharga bagi saya. Dalam pandangan saya, jika semua pemilik web dan blogger membuat konten yang baik
seperti yang Anda lakukan, internet akan menjadi a jauh lebih berguna dari sebelumnya.
Feel free to surf to my webpage Slot 123 joker
Thank you for another great post. The place else may just anyone get that type of
information in such a perfect method of writing? I have a presentation subsequent week, and I am at the
look for such info.
Here is my web-site; http://www.saraykapi.com
Wow, marvelous blog layout! How long have you been blogging for?
you made blogging look easy. The overall look of your
website is fantastic, as well as the content!
my site kebe.top
I am really inspired with your writing abilities as smartly as with the format
to your blog. Is this a paid topic or did you customize it yourself?
Either way keep up the nice quality writing, it is uncommon to see a great blog like this
one these days..
Feel free to surf to my page :: https://www.qijiang520.com/
I just like the helpful information you provide on your articles.
I’ll bookmark your blog and take a look at once more
here regularly. I’m slightly sure I will be told many
new stuff proper here! Good luck for the following!
Also visit my webpage: http://www.medflyfish.com
Thank you for any other informative blog. Where else may just
I get that type of information written in such
a perfect method? I’ve a challenge that I am simply now working on, and I have been on the glance out for such information.
My page … http://pansionat.com.ru/modules.php?name=Your_Account&op=userinfo&username=HiattErmelinda
Spot on with this write-up, I really feel this website needs a great deal more attention. I’ll probably be returning to
read through more, thanks for the information!
Also visit my web blog :: Kodo Detox Patches Reviews
I always was interested in this topic and stock still am, thank you for putting
up.
Feel free to surf to my page – Rueben
945593 26069Music started playing anytime I opened this web internet site, so annoying! 592577
833276 223079I surely did not understand that. Learnt a thing new nowadays! Thanks for that. 348078
899800 355935Its superb as your other posts : D, regards for posting . 461565
735831 904291Normally I dont read write-up on blogs, but I would like to say that this write-up quite compelled me to try and do so! Your writing style has been amazed me. Thanks, quite wonderful post. 889884
745365 443185I got what you mean ,bookmarked , extremely nice internet website . 293775
939676 647559Normally I do not learn post on blogs, nonetheless I would like to say that this write-up really pressured me to look at and do so! Your writing style has been surprised me. Thank you, quite excellent post. 840479
925296 702216Youre so cool! I dont suppose Ive learn something like this before. So good to search out any person with some special thoughts on this topic. realy thanks for starting this up. this website is one thing thats wanted on the net, somebody with a bit originality. helpful job for bringing one thing new towards the internet! 780935
486864 434791Can I just say what a relief to search out somebody who actually is aware of what theyre speaking about on the internet. You undoubtedly know how to deliver a difficulty to light and make it essential. Extra folks need to have to learn this and perceive this facet with the story. I cant consider youre no more common because you positively have the gift. 58772