The UK’s competition watchdog launched an investigation into Apple after complaints over the way the company treats app developers.
The iPhone maker is in a long-running dispute with developers over the cut it takes from App Store downloads and in-app purchases.
High-profile developers including Epic Games – creators of hit video game Fortnite – complained that they can distribute their apps only to iPhones and iPads via the store and are forced to use Apple’s payment system.
The tech giant charges commission of up to 30 per cent on all App Store transactions.
Britain’s Competition and Markets Authority said on Thursday it would investigate Apple’s procedures.
The watchdog said it would consider whether Apple had a dominant market position resulting in limited choice and higher prices for users.
CMA chief executive Andrea Coscelli said consumers could be losing out “if anti-competitive practices by big tech go unchecked”.
“Millions of us use apps every day to check the weather, play a game or order a takeaway. So, complaints that Apple is using its market position to set terms which are unfair or may restrict competition and choice – potentially causing customers to lose out when buying and using apps – warrant careful scrutiny,” she said.
“Our ongoing examination into digital markets has already uncovered some worrying trends.”
Apple said its App Store was a platform that worked well for all parties.
“The App Store has been an engine of success for app developers, in part because of the rigorous standards we have in place – applied fairly and equally to all developers – to protect customers from malware and to prevent rampant data collection without their consent,” an Apple spokesman said.
“We look forward to working with the UK Competition and Markets Authority to explain how our guidelines for privacy, security and content have made the App Store a trusted marketplace for both consumers and developers.”
The UK is launching a new regulatory process to monitor tech giants in the digital sector.
The CMA will this year become home to a new digital markets unit, which will police the internet companies and have powers to impose significant fines.
Ms Coscelli told of forthcoming investigations against Silicon Valley companies, such as Google and Amazon, once the new unit is established.
Apple is facing four competition investigations in the EU, including three relating to the App Store.
