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UK Think Tank Calls for Stronger CMA to Curb Apple and Google App Store Practices

The IPPR report urges enhanced regulatory powers to tackle high commission fees and support domestic innovation, as the CMA prepares provisional findings on Big Tech investigations this summer.

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Apple and Google profit from their dominance of app stores
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Overview

  • The Institute for Public Policy Research (IPPR) has called for the UK’s Competition and Markets Authority (CMA) to adopt stronger enforcement measures against Apple and Google’s dominance in app marketplaces.
  • Apple and Google’s 30% commission on in-app purchases generated an estimated £1.5bn-£2.4bn in UK revenues in 2024, with critics arguing this stifles innovation and growth for domestic developers.
  • IPPR analysis suggests reducing app store commissions to 12% could redirect £1.4bn to UK developers in 2024, potentially rising to £3.3bn annually by 2029 to fuel innovation and job creation.
  • The CMA, operating under a new growth-focused mandate led by interim chair Doug Gurr, is expected to release provisional findings on its investigation into Apple and Google’s mobile practices this summer.
  • Concerns about political interference in the CMA’s independence have intensified following leadership changes and the government’s directive to prioritize growth alongside competition enforcement.