LONDON, Feb 10 (Reuters) - Apple and Google have agreed to make their mobile app stores fairer and more transparent for thousands of developers, Britain's antitrust regulator said on Tuesday, hailing it as an important first step in its tougher regime.
The Competition and Markets Authority (CMA) designated the two tech giants as having "strategic market status" in smartphones in October, giving it the power to demand specific changes to boost competition.
Thousands of businesses rely on Apple's App Store and Google's Play Store to review and distribute their apps, and many have complained the process is unclear and inconsistent.
The CMA said Apple and Google, whose iOS and Android operating systems power nearly all smartphones in Britain, had committed to ensure their store rankings and reviews operated fairly, and to safeguard data collected from developers.
Developers will also be able to request access to more features in Apple iOS to create competing products, for example related to digital wallets or live translation.
FLEXIBLE REGIME AND QUICK RESULTS
The commitments, however, do not include anything related to the biggest bugbear for developers: the commission Apple and Google charge for purchases, subscriptions and in-app purchases.
The CMA said in July that commission levels, which range up to 30%, were a "key concern".
It said on Tuesday that an ability to steer users to alternative payment methods remained a priority, but any changes needed to reflect steps taken by other jurisdictions. It said it was continuing to engage with Apple and Google on the issue.
The CMA said it worked with the two companies to agree commitments rather than impose tougher formal requirements.
CMA Chief Executive Sarah Cardell said this approach "reflected the unique flexibility of the UK digital markets competition regime" and delivered quicker results for consumers and businesses.
"These are important first steps while we continue to work on a broad range of additional measures to improve Apple and Google’s app store services in the UK," she said.
The European Union has taken a more aggressive stance, including fining Apple 500 million euros ($595 million) in April for technical and commercial restrictions in its App Store. The company later proposed changes to its App Store rules and fees.
Apple said it "appreciated the positive and ongoing dialogue" with the British regulator.
"The commitments announced today allow Apple to continue advancing important privacy and security innovations for users and great opportunities for developers," it said.
Google said that while it believed its existing developer practices were fair, objective, and transparent, it welcomed the opportunity to resolve the CMA's concerns collaboratively.
"We are deeply committed to providing a platform where developers can thrive and users can explore with confidence," a spokesperson said.
($1 = 0.8402 euros)
(Reporting by Paul Sandle and Sam Tabahriti; Editing by Kate Holton and Emelia Sithole-Matarise)
