Apple, Google app store practices under Australian watchdog’s scanner

Australian Competition and Consumer Commission (ACCC) on Tuesday said that it will investigate the data privacy policies and the extent of competition between Apple and Google app stores.

“We are interested in how data is used and shared in the app ecosystem, including the data available to Google and Apple as a result of their control of the major app stores,” Delia Rickard, the commission’s deputy chair, said in a statement.

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The enquiry will look into the market for mobile apps in Australia, including how transparent and effective the market is, for consumers as well as those operating in the market. It will also focus on the extent of competition between the major online app stores, and how they compete for app sales with other app providers

The commission is planning for a consumer survey on app purchases. This will be further studied to examine markets for the supply of digital platform services in Australia. A final report is expected in March 2021.

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“Apps have become essential tools for daily living for many Australian consumers, a trend that is likely to have increased during the COVID-19 pandemic. Apps are, in turn, increasingly important for businesses as they promote, grow and run their enterprises,” Delia added.

As of now, both Apple and Google take a 30 percent cut of all in-app purchases from apps that are hosted on their platforms. The issue came to the spotlight when Apple and Google pulled the video game Fortnite from their mobile app store after it released an update that dodges revenue sharing with the tech giants.

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Last month, Australia had proposed a law that would require Google and Facebook to pay local media companies for republishing their news under a royalty-style system.