The ACM launches its inquiry off the back of its recent market study into app stores.
Background: The Dutch Authority for Consumers & Markets (ACM) launched a market study into mobile app stores in July 2018. The ACM wanted to understand how app providers get their apps on the app stores, and the influence app stores have on users’ ability to choose between apps.
The findings: Today, the ACM published its study, finding that app providers have “no realistic alternative” to Apple’s App Store and Google’s Play Store. While Apple and Google have an interest in offering a variety of apps on their stores, they are also app providers themselves, which means their vertically integrated apps compete with those of others. App providers say they do not always have a fair chance against Apple’s own apps, or against apps that Google has pre-installed on phones. Providers of digital products and services are required to use Apple’s and Google’s payment systems for in-app purchases, and pay a 30% commission in the first year. They are also not always able to use all functionalities of an iPhone, and claim to have difficulties in communicating with Apple and Google about the application of their conditions. These problems led the ACM to launch an investigation into Apple’s behavior.
Next steps: There is currently no indication as to how long it will take for ACM to carry out the investigation. The ACM noted the recently approved European Platform-to-Business Regulation could solve the lack of transparency in communications, and that the door should be left open to forms of ex-ante regulation, similar to the European Open Internet Regulation.
