The UK's competition watchdog has shelved investigations into Apple's App Store and the Google Play Store but said it plans to apply new digital market rules to address its concerns about unfair behaviour in the sector.
Today the Competition & Markets Authority said it was "case closed on the grounds of administrative priorities" for both probes, but adding that it had decided not to accept proposed remedies from Google.
It will now look into competition concerns under the new Digital Markets, Competition and Consumers Act that was passed by parliament in May.
The CMA said it "remains concerned that Google and Apple are using their market positions via the Play Store and App Store respectively to set terms which may be unfair to UK app developers and which may restrict competition and consumer choice, potentially leading to higher prices and reduced choice for app users".
It rejected commitments submitted by Google in response to its concerns as the proposals did not address competition concerns effectively.
In light of the new digital markets regime, the CMA said it has assessed its existing investigation into the Play Store and App Store rules against its administrative priorities and decided to close these cases at this point.
"Should Apple or Google each or both be designated as having ‘strategic market status’ in connection with any digital activities in the mobile sector, the CMA will be able to use its new powers to consider the range of issues raised by parties more holistically than it otherwise could under these specific Competition Act investigations."
The new pro-competition digital markets regime has not yet come into force, but when it does, CMA director Will Hayter said the watchdog will be able to consider applying those new powers to concerns it has already identified.
"It’s critical that tech businesses in the UK, including app developers, can have access to a fair and competitive app ecosystem, helping to grow the sector, boost investment and result in better outcomes for UK consumers. These are all factors we are considering before launching our first investigations under the new regime."