Apple to be investigated by CMA for alleged unfair practices

The British competition regulator launched an investigation into Apple Inc. after several complaints were filed against the company, reports WION. The complaints reportedly state that the iPhone maker treats app developers unfairly and also for its anti-competitive practices.

As a result of the complaints being filed, the Competition and Markets Authority (CMA) said that it will inspect Apple’s practices and guidelines. The authority will reportedly look into the app distribution practices on iPhones, iPads, Macs, and all other Apple devices present in the United Kingdom.

Lowered fee to be charged for small businesses

For years now, developers have criticized Apple for charging a hefty tax of 30% on the apps published on the App Store. However, the company made some changes last year and has reduced the tax on businesses that generate less $1 million in a year. The change is a welcome but not all wants of the developers have been satisfied as of yet.

App Store

Apple also requires that all apps use only its payment system for in-app purchases. Many companies such as Epic Games, Spotify, and many more do not appreciate the fact that apps on iOS need to use Apple’s payment system for any in-purchases or for subscriptions. 

Epic Games’ popular game Fortnite was removed from the iOS App Store last year as the developers were using their own payment system instead of Apple’s. Spotify also does not offer the option of subscription payments to be made through Apple’s in-app payment system. At the moment, Spotify requires users to start their subscription by visiting their website – to enter the payment details.

Apple has said that it looks forward to working with the Competition and Markets Authority (CMA) to resolve the matter. The company has said that it will explain how the practices it uses makes the App Store “a trusted marketplace for both consumers and developers”.

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