United Kingdom: Closed CMA investigation into Google for alleged anti-competitive app store practices based on administrative priorities

On 21 August 2024, the Competition and Markets Authority (CMA) decided to close its investigation into Google's Play Store under the Competition Act, stating that it is against its administrative priorities following the recent passage of the Digital Markets, Competition and Consumers Act (DMCCA) in May. The CMA evaluated its priorities and determined that this closure allows them to better address broader concerns under the new legislation. If Google is later designated as having strategic market status in the mobile sector, the CMA will use its powers under the DMCCA to take a more comprehensive approach to the issues raised, allowing for potential future interventions if necessary. Additionally, the CMA rejected the commitments Google previously proposed in relation to its Google Play’s rules, which oblige app developers offering digital content to use Google’s own billing system for in-app purchases. In particular, Google committed to offering application developers the option to use different billing systems for processing in-app transactions. The developers would be able to choose a “Developer-only Billing” (DOB) or Google Play’s billing system, the “User Choice Billing” (UCB). In the first phase, the option will be available only for non-gaming applications and, from October 2023 to all application developers. Furthermore, Google committed to reducing the Google Play service fee by 4% if the developers choose to use the UCB system and by 3% if the developer uses the UCB.