The Competition and Markets Authority said the investigation will consider whether Apple has a dominant position in the distribution of apps on Apple devices in the UK.
Apple charges a commission of up to 30 percent to developers on the value of transactions or any time a consumer buys their app.
The regulator said it will also investigate if Apple imposes unfair or anti-competitive terms on developers using the App Store.
Apple said that it was not worried about the investigation and it looks forward to working with the UK Competition and Markets Authority to explain how our guidelines for privacy, security and content "have made the App Store a trusted marketplace for both consumers and developers".
Andrea Coscelli, Chief Executive of the CMA 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. Our ongoing examination into digital markets has already uncovered some worrying trends. We know that businesses, as well as consumers, may suffer real harm if anti-competitive practices by big tech go unchecked. That’s why we’re pressing on with setting up the new Digital Markets Unit and launching new investigations wherever we have grounds to do so.
Today’s announcement follows the CMA’s July 2020 report on its market study into online platforms and digital advertising, and the CMA’s advice to the Government in December 2020 on the shape of a new pro-competition regulatory regime for digital markets. As the CMA works with the Government on these proposals – which will complement its current enforcement powers – the CMA will continue to use its existing powers to their fullest extent in order to protect competition in these areas.
The European Commission (EC) currently has four open antitrust probes into Apple, which were launched prior to the end of the UK’s Transition Period. These include three open investigations into Apple’s App Store. The CMA continues to coordinate closely with the EC, as well as other agencies, to tackle these global concerns.
