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LONDON — Britain’s competition regulator on Thursday launched an investigation into the giant mobile ecosystems of Apple and Google to determine whether the tech giants broke Britain’s tough new digital competition rules.
Britain’s Competition and Markets Authority said it would launch a dual investigation into the two US tech giants to assess whether they hold a “strategic market position” in their respective mobile ecosystems, including operating systems, app stores and smartphone-based browsers.
The CMA said the investigation would “examine the impact on people who use mobile devices and the thousands of businesses that develop innovative services or content, such as apps for these devices.”
“Apple believes in thriving, dynamic markets where innovation can thrive,” an Apple spokesperson told CNBC. “We face competition in every sector and jurisdiction in which we operate, and our focus will always be the trust of our users.”
An Apple spokesperson added: “In the UK alone, the iOS app economy supports hundreds of thousands of jobs and allows developers large and small to reach users on a trusted platform.” “We will continue to work constructively with the CMA as work on this matter progresses.”
Oliver Bethell, Google’s senior director of competition, said the company’s Android platform “has helped expand choice, drive down prices and democratize access to smartphones and apps.”
“This is the only example of a successful and viable open source mobile operating system,” Bethell said, calling for “a way forward that does not limit choice and opportunity for both UK consumers and businesses, and does not jeopardize UK growth prospects.”
Earlier this week, the UK replaced CMA chairman Marcus Bokkerink with Doug Gurr, the former Amazon UK country manager. At the time, the watchdog noted that regulators had been asked in recent meetings with the government to “refocus efforts on breaking down barriers to business and promoting growth”.
Labor MP Dan Aldridge said in an email that the CMA’s opening of investigations into Apple and Google was “an important step forward in ensuring fair competition in the digital economy.”
“Companies like Apple and Google decide what we have access to and how much we pay for it,” he said in emailed comments Thursday. “These investigations will look into these practices as they can stifle innovation and result in higher prices for consumers.”
new power
The CMA has strengthened its regulatory powers after new UK legislation, the Digital Markets, Competition and Consumer Act (DMCC), came into force earlier this year.
DMCC is committed to preventing anti-competitive conduct in digital marketplaces. Large companies with significant market power in certain digital activities may be designated as having a ‘strategic market position’.
The CMA now has the power to impose changes to prevent potential anti-competitive behavior by companies granted strategic market positions.
According to the regulator, almost all mobile devices sold in the UK come pre-installed with Apple’s iOS or Google’s Android operating systems, and the app store and browser have a monopoly or leading position on the platform compared to alternative products and services.
The CMA added that almost all (94%) of people aged 16 and over in the UK (around 56 million people) now use a smartphone, with the average Briton using a mobile device for around three hours a day.
The committee said it would look into three key issues: the degree of competition between Apple and Google’s mobile ecosystem, the potential for the tech giants to leverage their market power for other activities, and potential exploitative practices.
“A more competitive mobile ecosystem can foster new innovation and new opportunities across a variety of services, including app stores, browsers and operating systems used by millions of people,” CMA CEO Sarah Cardell said in a statement Thursday. “He said.
Cardell added: “Better competition could also spur growth here in the UK, as businesses are able to offer new and innovative types of products and services on platforms from Apple and Google.”
