Fortnite supporters experience uncertainty as Epic Games criticizes the CMA for postponing the iOS release in the UK
In the ongoing battle between tech giants, the UK's Competition and Markets Authority (CMA) has taken a unique approach to regulating digital markets. The CMA has proposed designating Apple's iOS and Google's Android platforms with Strategic Market Status (SMS) under a new digital markets competition regime [1][2][3][4].
This move aims to address Apple's entrenched market power in mobile app distribution and payments on iOS. The CMA's approach shares similarities with the EU and US, but it also has its differences.
| Aspect | UK (CMA) | EU (DMA/DSA) | US (FTC/DOJ) | |--------------------------------|--------------------------------------------|-------------------------------------------|-------------------------------------------| | Regulatory Framework | Digital markets competition regime with SMS designation, bespoke codes of conduct | Digital Markets Act (DMA) and Digital Services Act (DSA), prescriptive conduct rules | Primarily antitrust enforcement, plus measures like the proposed Open App Markets Act in Congress | | Scope | Focus on “mobile platforms” including OS, app stores, payments | Broad digital gatekeepers across platforms | Focus on antitrust cases and proposed legislation for app stores and monopolistic practices | | Enforcement Style | Proactive SMS status with ongoing consultation and roadmaps for market-specific measures | Binding rules with fines; some flexibility for gatekeepers | Reactive case-by-case antitrust enforcement and sector-specific legislative proposals | | Key Issues Addressed | 30% commission fees, restrictive app store policies, limiting sideloading, opaque pricing | Similar issues: mandatory sideloading, fair access, transparency | Similar focus on Apple’s App Store practices, anti-steering provisions, app store commissions | | Impact on Epic Games Store | CMA paused third-party app store & sideloading proposals based on small developer concerns; currently Apple’s iOS still limits alternatives | EU DMA requires allowing alternative app stores and sideloading on iOS | No direct federal mandate yet; Epic ongoing litigation leverage; sideloading not mandated | | Impact on Apple App Store on iOS | Apple designated with SMS, potential conduct code could force less restrictive app store rules, but still cautious on security; maintaining safety for small developers emphasized | DMA forces Apple to allow third-party app stores and sideloading, reduces commissions | Ongoing court battles; regulators press Apple on anti-competitive practices, but no enforced mandatory app store opening yet |
The CMA's approach is more nuanced than the EU's DMA, as it balances competition with consumer safety concerns. It has paused aggressive proposals such as mandatory third-party stores and sideloading pending further stakeholder consultation, aiming to avoid chilling innovation or consumer harm [1][2][5].
In contrast, the EU's DMA, effective around this period, mandates Apple to permit sideloading and alternative app stores on iOS, which has a profound impact on competition, potentially benefiting platforms like the Epic Games Store. The US remains in a more fragmented and slower regulatory state, relying on antitrust litigation and pending legislation.
The CMA's current position means that Apple's App Store on iOS in the UK is likely to face stricter rules but without the full forced opening that the EU imposes. This could affect competition with platforms like the Epic Games Store differently across jurisdictions.
Notably, Epic Games has announced that it will not release the Epic Games Store on iOS in the United Kingdom this year due to the recently released CMA roadmap. Apple may continue to impose fees and discriminate against apps using out-of-app payment, leading to years of malicious compliance.
The CMA's decisions have been criticized for not being in the best interest of market competition, with some arguing that Apple's practices may lead to a walled garden growing rotten fruit. The ongoing battle between Epic and Apple is still ongoing, and some are surprised that it is still happening.
In light of these developments, the CMA will enable developers to advertise alternative payment options, providing a glimmer of hope for a more competitive app ecosystem in the UK.
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