Apple, Google’s app store probes closed by UK regulator ahead of new law’s rollout

The U.K.’s Competition and Markets Authority said it has closed its existing cases into Google’s Play Store and Apple’s (NASDAQ:AAPL) App Store as it expects to consider concerns under the new digital markets competition regime.

In June, the U.K.’s antitrust watchdog had extended the timeline for its tentative review proceedings on Apple and Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) unit Google’s conduct in relation to distribution of apps on their respective app stores. The cases focused on the rules that require app developers offering content, such as games, to use Google Play’s or Apple’s own billing systems for in-app purchases, which the CMA was concerned limited developers’ choice of payment solution and made it more difficult for them to deal directly with their customers.

The agency said on Wednesday that the move comes at the same time as the CMA rejected commitments submitted by Google in response to its concerns. Google’s proposals would have given app developers the ability to use alternative payment options to Google Play’s billing system, under proposals known as Developer-only Billing, or DOB, and User Choice Billing, or UCB.

However, after consulting app developers and reviewing evidence, CMA noted that it was not satisfied that Google’s proposed commitments address its competition concerns effectively.

The CMA said that in light of the passing of the Digital Markets, Competition and Consumers Act, or DMCCA, in May, the agency assessed its existing Competition Act probes into Google’s Play Store and Apple’s App Store rules against its administrative priorities and has decided to close these cases at this point.

“Once the new pro-competition digital markets regime comes into force, we’ll be able to consider applying those new powers to concerns we have already identified through our existing work,” said Will Hayter, executive director for Digital Markets at the CMA.

The regulator noted that if Apple or Google are designated as having ‘strategic market status’ in connection with any digital activities in the mobile sector, it will be able to use its new powers to consider the range of issues raised by parties more holistically than it could under the specific Competition Act investigations.

This will also enable the CMA to consider what, if any, interventions may be needed after any designation.

Earlier this month, Apple updated its App Store fee structure for developers in the EU to comply with rules under the European Commission’s Digital Markets Act, or DMA. The changes centered around how app developers using Apple’s App Store in the EU link to the web to show users alternative payment methods.