Apple and Google have committed to avoid discriminating against apps that compete with their own products under an agreement with the UK’s competition watchdog which has been labelled “lightweight”.
The US tech companies have vowed to be more transparent about vetting third-party apps before letting them on their app stores and not discriminate against third-party apps in app search rankings.
They have also agreed not to use data from third-party apps unfairly, such as using information about app updates to tweak their own offerings.
Apple has also committed to giving app developers an easier means of requesting use of its features such as the digital wallet, and live translation for AirPod users.
The commitments have been secured as part of a new regulatory regime overseen by the Competition and Markets Authority, (CMA), which has the power to impose changes on how Apple and Google operate their mobile phone platforms after deciding last year that they had “substantial, entrenched” market power.
However, the CMA has opted to allow voluntary commitments rather than impose formal changes.
Tom Smith, a competition lawyer at Geradin Partners and a former CMA director, said the changes were “lightweight”.
The CMA did not name specific Google and Apple apps that compete with third-party rivals but both firms offer their own music services in the form of YouTube Music and Apple Music. Google and Apple’s app stores are vital shopfronts for app developers because the Android and iOS platforms are used by the overwhelming majority of UK mobile phone users.
However, the commitments do not cover a significant bugbear for app developers – the fees of up to 30% that Apple and Google charge developers to sell products via their app stores. The CMA is still considering whether to tackle how Apple and Google charge developers.
The CMA said if the companies fail to implement the commitments effectively they will impose them formally under new enforcement powers against tech companies. The commitments will come into force on 1 April.
Sarah Cardell, the chief executive of the CMA, said: “The ability to secure immediate commitments from Apple and Google reflects the unique flexibility of the UK digital markets competition regime and offers a practical route to swiftly address the concerns we’ve identified.”
Under the commitments, Apple and Google must provide data to the regulator showing the number of apps submitted for review and whether they were approved or rejected, plus the time taken to review those apps as well as the number of complaints received about the app stores and the outcomes of those processes.
The CMA will also monitor the outcome of applications to use the features and functionality within Apple’s mobile operating systems, such as the digital wallet.
Smith said: “This first batch is so lightweight that it barely exists, and the promises made by Google and Apple are not legally binding in any case.
“The main measures that could help with cost of living and economic growth issues may come later this year, such as forcing Apple to allow alternative app stores on its devices and to allow customers to avoid paying Apple’s commission.”
An Apple spokesperson said the company faced “fierce competition” in every market it operates in. “The commitments announced today allow Apple to continue advancing important privacy and security innovations for users and great opportunities for developers. We appreciate the positive and ongoing dialogue with UK officials.” they said.
A Google spokesperson said its mobile ecosystem, including its Google Play app store, was a “driver of growth” in the UK economy. “While we believe Play’s existing developer practices are fair, objective, and transparent, we welcome the opportunity to resolve the CMA’s concerns collaboratively,” they said.
