(Feb 10): Apple Inc and Alphabet Inc’s Google committed to making app stores changes to ensure fairness to developers and consumers, the UK’s antitrust watchdog said announcing the first assurances from Big Tech firms under the country’s digital market rules.
The Competition and Markets Authority (CMA) has asked players in the market for their views on the voluntary offers that relate to data collection, how apps are ranked and interoperability, the CMA said.
The changes will ensure that app developers “get fairer terms” and businesses can compete with Apple’s digital wallet, the CMA said.
The announcement marks the first set of changes that US technology firms have assured after the UK’s regime for digital markets came into effect last year.
“The commitments announced today [Tuesday] allow Apple to continue advancing important privacy and security innovations for users and great opportunities for developers,” an Apple spokesperson said.
The antitrust watchdog previously found the two companies had a duopoly and designated both firms as having Strategic Market Status in mobile platforms market — effectively a measure which puts in guardrails for how powerful tech firms behave.
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Under the rules, the CMA can impose conduct requirements on firms that include making it easier for users to download apps and pay for content outside of Apple and Google’s own platforms.
Any investigation can open the door for measures, such as enforcement and fines, in order to encourage competition in the mobile ecosystems market. The UK app economy generates an estimated 1.5% of UK GDP and Apple and Google’s mobile platforms ran on almost all mobile devices, the CMA found.
The two companies will implement the changes from April following the CMA’s market review..
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Google’s app store practices are “fair, objective and transparent” and the commitments will resolve the CMA’s concerns collaboratively, a spokesperson said.
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