By Samantha Jones-
The UK antitrust regulator, the Competition and Markets Authority (CMA), has been refused permission to appeal a ruling that it has no power to investigate Apple over its App Store policies. The CMA had sought to appeal the ruling made by the Competition Appeal Tribunal (CAT) in March, which dismissed the CMA’s case against Apple.
The CMA takes action against businesses and individuals that take part in cartels or anti-competitive behaviour. we protect people from unfair trading practices, including in cases where unfair treatment suggests there may be a systemic market problem.
The case centred on whether Apple’s App Store policies, which require developers to use Apple’s in-app payment system and pay a 30% commission, were anti-competitive. The CMA argued that these policies harm competition and innovation in the app market, and that Apple’s dominant position in the market gives it undue power over developers and consumers.
However, the CAT ruled that the CMA did not have the jurisdiction to investigate Apple’s App Store policies under UK competition law, as Apple’s activities in this regard were deemed to fall outside the scope of the law. The CAT’s ruling was seen as a major blow to the CMA’s efforts to regulate the digital economy, and raised questions about whether the regulator has the necessary powers to tackle anticompetitive practices in the sector.
The CMA had hoped to challenge the CAT’s ruling by seeking permission to appeal to the Court of Appeal. However, on May 25th, the Court of Appeal refused the CMA’s request, stating that there were no grounds for appeal. This means that the CAT’s ruling stands, and the CMA will not be able to investigate Apple’s App Store policies under UK competition law.
The decision has been criticized by some as a setback for competition in the digital economy, and has reignited calls for a more robust regulatory framework to address anticompetitive practices in the sector. Critics argue that the current system is ill-equipped to deal with the unique challenges posed by digital markets, and that the CMA’s lack of power to investigate Apple highlights the need for more comprehensive regulation.
Supporters of the CAT’s ruling argue that it is a victory for consumer choice and innovation, as it upholds the principle that companies should have the freedom to operate their businesses as they see fit, within the bounds of the law. They argue that Apple’s App Store policies are not anti-competitive, but rather reflect the company’s efforts to maintain a safe and secure environment for app developers and consumers.
Apple itself welcomed the Court of Appeal’s decision, stating that it was “pleased” that the CAT’s ruling had been upheld. The company has long maintained that its App Store policies are fair and reasonable, and that they help to ensure a level playing field for developers and a safe and secure environment for consumers.
The decision not to allow the CMA to appeal the ruling that it has no power to investigate Apple’s App Store policies is likely to have significant implications for the future of competition regulation in the digital economy.
It highlights the need for a more comprehensive regulatory framework that can address the unique challenges posed by digital markets, and raises questions about the balance between consumer protection and business innovation in the sector.