UK antitrust agency investigating apple over app store practices

Controversy continues to dog the company over its relationship to app developers.

| More on:
A businessman uses an app on his mobile phone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple Inc's (NASDAQ: AAPL) App Store is attracting more controversy. On Thursday, the Competition and Markets Authority (CMA), an antitrust arm of the UK government, disclosed that it has launched an investigation into the US tech giant's business practices with the online store.

The CMA said it was doing so in the wake of both complaints from developers about those practices and the agency's own work in the digital sphere. These allege that Apple's fairly strict terms for developers to get their software into the App Store are not fair and possibly in violation of the country's competition law.

In other jurisdictions, such as the US, Apple has come under fire for the way it partners with developers in that marketplace. It takes a commission of 30% of all App Store sales and reaps similar fees for in-app purchases made by users. As the CMA pointed out in the press release announcing its investigation, the App Store is the only legitimate means for developers to distribute their offerings for Apple devices. It is also the only platform for Apple users to access them.

The CMA said that its investigation will focus on whether Apple's terms and conditions are unfair or anti-competitive to developers. It will also take into consideration whether user choice is consequently being restricted or if those customers are paying unacceptably high prices for apps and add-ons.

"Millions of us use apps every day to check the weather, play a game or order [takeout food]," the CMA quoted its chief executive Andrea Coscelli as saying.

"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."

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Eric Volkman owns shares of Apple. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
International Stock News

The US election is done and dusted. Is now the time to buy the ASX NDQ ETF?

US stocks continue to march higher this week.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
International Stock News

Why is everyone talking about the VIX Index today?

Fear or greed: Which investor sentiment will prevail today?

Read more »

A young kid with dark glasses rocks out with a guitar.
International Stock News

Why Nvidia stock rallied to a new all-time high on Wednesday

The changing of the guard bodes well for the artificial intelligence (AI) chip specialist.

Read more »

A handsome smiling man sits in the front seat of an electric vehicle with his hands on the wheel feeling pleased that the Carsales share price is going up and the company will shortly pay its biggest dividend ever
International Stock News

Why Tesla stock just skyrocketed

Why is Donald Trump's election victory powering explosive gains for Tesla stock?

Read more »

Man holding up betting slip and cheering along with two friends in front of TV
International Stock News

Elon Musk's big gamble: Will Tesla stock plunge if Kamala Harris wins the election?

The Tesla CEO has been an outspoken advocate for GOP presidential candidate Donald Trump. Will it backfire?

Read more »

Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.
Economy

Up 20% this year. Does the S&P 500 Index have more in the tank for 2024?

Will US stocks hold up after the election?

Read more »

two young boys dressed in business suits and wearing spectacles look at each other in rapture with wide open mouths and holding large fans of banknotes with other banknotes, coins and a piggybank on the table in front of them and a bag of cash at the side.
International Stock News

2 magnificent S&P 500 dividend stocks down 27% to 51% to buy and hold forever

These stocks hold potential to act as growth and income plays.

Read more »

A young female investor with brown curly hair and wearing a yellow top and glasses sits at her desk using her calculator to work out how much her ASX dividend shares will pay this year
International Stock News

One Wall Street analyst thinks this emerging Artificial Intelligence stock could rise 60% in the next year

SoundHound AI is on the doorstep of a big year.

Read more »