Apple and Google were investigated by the UK regulator on mobile platforms
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The U.K.’s competition watchdog has launched an investigation into Apple and Google’s mobile platforms, days after the government forced the bench in a push to reduce the regulatory burden on business.
Competition and Market Authority he said. On Thursday, the creators of the iPhone and Android smartphone operating systems will examine whether or not they should be subject to further scrutiny of how they manage their mobile platforms, in the second investigation of the new digital markets system.
The announcement comes two days after the government sacked Markus Bockkern as CMA chairman over concerns that the regulator was not focused enough on growth.
The surprise move has led many to speculate that Big Tech could be treated more leniently by the antitrust regulator. The government has appointed Doug Gurr, who previously ran Amazon’s UK business, as interim chairman of the CMA.
On Thursday, the CMA said it would investigate how Apple and Google were competing against each other, selecting their own apps and services, and whether developers were treated fairly.
“More competitive mobile ecosystems can drive innovation and new opportunities across a range of services used by millions of people,” said CMA CEO Sarah Cardell.
“Better competition can boost growth here in the UK, with businesses able to offer new and innovative products and services on the Apple and Google platforms,” she added.
As part of the UK’s Digital Markets, Competition and Consumer Act, which came into effect this month, the CMA can designate a small group of companies as having a “strategic market position”, imposing similar standards of conduct to the EU’s Digital Markets Act.
Last week, the CMA opened the first such case, reviewing Google’s dominance in search and advertising.
The CMA is investigating Google and Apple on separate mobile web browsers and the cloud game, finding that the two companies have temporarily “captured the competition” in browsers.
“Android’s openness has helped expand choice, lower prices, and democratize access to smartphones and applications. It is the only example of a successful and effective open source mobile operating system.” he said. Oliver Bethel, Google’s senior director of competition.
He added: “We choose a way forward that does not hinder equal choice and opportunities for UK consumers and businesses and does not threaten the UK’s growth prospects.”
Apple, which says its app platform supports hundreds of thousands of UK jobs, said it would “continue to engage constructively” with the CMA.
“Apple believes in rich and dynamic markets where innovation can flourish,” the company said. “We face competition in every segment and jurisdiction in which we operate, and our focus is always on the trust of our users.”
The CMA’s investigation adds to the worldwide scrutiny that both companies are already challenging their dominance of the smartphone market.
Apple clashed several times with Brussels last year over the implementation of the Digital Markets Act, which made changes to the platform after the European Commission accused the iPhone maker of failing to comply with “online gatekeeper” rules.
If designated, the UK’s “strategic market status” would last for five years and companies could be fined up to 10 per cent of global turnover for breaching the code of conduct.
The CMA said it would receive comments before February 12 and complete its investigation by October 22.