LONDON 鈥� U.K. authorities have launched an investigation into Apple's App Store over concerns it has a dominant role that stifles competition and hurts consumers.
The Competition and Markets Authority said Thursday it was looking into 鈥渟uspected breaches of competition law" by Apple. The announcement adds to regulatory scrutiny of the iPhone maker's app distribution platform, which is also the subject of three antitrust probes by the European Union's executive Commission.
Apple said the App Store is 鈥渁 safe and trusted place for customers鈥� and a 鈥済reat business opportunity for developers.鈥�
The investigation was triggered in part by complaints from app developers that Apple will only let them distribute their apps to iPhone and iPad users through the App Store. The developers also complained that the company requires any purchases of apps, add-ons or upgrades to be made through its Apple Pay system, which charges up to 30% commission.
鈥淢illions of us use apps every day to check the weather, play a game or order a takeaway," Andrea Coscelli, the authority's CEO, said in a statement. 鈥淪o, complaints that Apple is using its market position to set terms which are unfair or may restrict competition and choice 鈥� potentially causing customers to lose out when buying and using apps 鈥� warrant careful scrutiny."
The watchdog said it would consider whether Apple has a 鈥渄ominant position" in app distribution for Apple devices in the U.K., and, if it does, whether the company 鈥渋mposes unfair or anti-competitive terms on developers鈥� that results in less choice or higher prices for consumers buying apps and extra.
Apple said it looked forward to explaining its App Store guidelines to the U.K. watchdog.
鈥淲e believe in thriving and competitive markets where any great idea can flourish," the company said by email. 鈥淭he App Store has been an engine of success for app developers, in part because of the rigorous standards we have in place 鈥� applied fairly and equally to all developers 鈥� to protect customers from malware and to prevent rampant data collection without their consent."
The Associated Press
