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PRIVACY
Tech

Government urged to break up Apple and Google's duopoly over app stores

The Competition and Markets Authority (CMA) must be "beefed up" to deliver faster and more forceful interventions in digital markets, especially against "exploitative practices" like excessive commission fees charged by Apple and Google

MA must tackle Apple and Google duopoly to unlock º£½ÇÊÓÆµ growth

One of Britain's foremost progressive think tanks has urged the government to fortify the powers of the competition regulator in order to challenge the tech behemoths such as Apple and Google.

The think tank expressed concerns about how their tight grip on app marketplaces impedes innovation, investment, and economic development in the º£½ÇÊÓÆµ, as reported by .

On Thursday, the Institute of Public Policy Research (IPPR) released a report which contends that the Competition and Markets Authority (CMA) requires strengthening to enable more prompt and impactful interventions in digital marketplaces, particularly to tackle "exploitative practices" like the excessive commission fees levied by Apple and Google on their app stores.

Apple and Google are under scrutiny by the CMA for charging up to 30 percent commission on in-app transactions.

According to calculations by the IPPR, these two technology giants could be earning between £1.5 billion and £2.4 billion from º£½ÇÊÓÆµ app store earnings in 2024.

Moreover, previous findings by the CMA suggest that Apple has been reaping gross profit margins ranging from 75 to 100 percent on its App Store.

Apple App Store

Dr George Dibb, head of the Centre for Economic Justice at IPPR, commented that the concentration of power within these app marketplaces is "extracting value" from British businesses and the workforce.

"Enforcing the º£½ÇÊÓÆµ's competition rules isn't anti-business – it's a pro-business, pro-worker, pro-growth agenda. If we weaken those rules, we're letting dominant firms and tech giants hold back innovation and investment," he said.