LONDON (AP) — Britain's competition regulator on Thursday launched an investigation into Apple and Google's vast mobile ecosystems to find out whether the tech titans are violating the U.K.'s tough recent digital competition rules.
Britain's Competition and Markets Authority said it’s launching dual investigations into each US tech giants to evaluate whether or not they have a “strategic market status” of their respective mobile ecosystems, including operating systems, app stores and smartphone-based browsers.
The research will examine “the impact on people who use mobile devices and the thousands of companies that develop innovative services or content such as apps for these devices.” said the CMA.
“Apple believes in thriving and dynamic markets where innovation can thrive,” an Apple spokesperson told CNBC. “We compete in all segments and jurisdictions in which we operate and our focus is always on the trust of our users.”
“In the UK alone, the iOS app economy supports hundreds of thousands of jobs and enables developers large and small to reach users on a trusted platform,” the Apple spokesperson added. “We will continue to work constructively with the CMA as their work on this matter progresses.”
Oliver Bethell, Google's chief competition director, said the corporate's Android platform “has helped expand choice, lower prices and democratize access to smartphones and apps.”
“It is the only example of a successful and viable open source mobile operating system,” said Bethell, calling for a “path forward that does not limit choice and opportunity for UK consumers and businesses and the UK’s growth prospects.” not in danger.”
Earlier this week, the UK replaced CMA chairman Marcus Bokkerink with Doug Gurr, a former Amazon UK country manager. At the time, the regulator noted that at a recent meeting with the federal government, regulators had been asked to “remove barriers to the economy and refocus their efforts on driving growth.”
New powers
The CMA now has expanded regulatory powers after a brand new UK law called the Digital Markets, Competition and Consumers Act (DMCC) got here into force earlier this yr.
The aim of the DMCC is to stop anti-competitive behavior in digital markets. It can designate large firms which have significant market power in a selected digital activity as having “strategic market status.”
The CMA now has the facility to implement changes to stop potential anti-competitive behavior by firms granted strategic market status.
According to the regulator, virtually all mobile devices sold within the UK come pre-installed with either Apple's iOS or Google's Android operating systems, and their app stores and browsers hold either exclusive or leading positions on their platforms in comparison with alternative services and products.
Almost all (94%) of individuals aged 16 and over – around 56 million consumers – within the UK currently have access to a smartphone and the common Brit spends around three hours a day on a mobile device, the CMA added.
The panel said it might examine three key questions, including the extent of competition between Apple and Google's mobile ecosystems, possible exploitation of the tech giants' market power for other activities and possible exploitative behavior.
“More competitive mobile ecosystems could drive new innovation and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems,” Sarah Cardell, chief executive of the CMA, said in a press release on Thursday.
“Better competition could also boost growth here in the UK, as companies would be able to offer new and innovative types of products and services on Apple and Google’s platforms,” Cardell added.
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