Unlock Editor’s Roundup for free
Roula Khalaf, editor of the FT, picks her favorite stories in this weekly newsletter.
The UK’s competition watchdog has launched an investigation into the mobile platforms of Apple and Google, just days after the government forced it to stand down as part of a push to reduce the regulatory burden on business.
The Competition and Markets Authority said on Thursday it will consider whether the makers of the iPhone and Android smartphone operating systems should be subject to extra scrutiny over how they run their mobile platforms, in the second investigation under the new regime. of digital markets.
The announcement comes just two days after the government sacked Marcus Bokkerink as chairman of the CMA, amid concerns that the regulator was not focused enough on growth.
The surprise move has many speculating that Big Tech may 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 look into how the makers of the iPhone and Android smartphone operating systems were competing with each other, whether they favored their apps and services and whether developers were treated fairly.
“More competitive mobile ecosystems can drive new innovations and new opportunities across a range of services that millions of people use, whether they’re app stores, browsers or operating systems,” said Sarah Cardell, CMA chief executive.
“Better competition can also drive growth here in the UK, with businesses able to offer new and innovative types of 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 force this month, the CMA can designate a small group of companies as having “strategic market status”, imposing behavioral requirements, similar to EU Digital Markets Act.
Last week, the CMA opened the first such case, reviewing Google’s dominance in search and advertising.
The CMA is already in the process of investigating Google and Apple in a separate investigation into mobile web browsers and cloud gaming, which has provisionally found that the two companies were “inhibiting competition” in browsers.
“The openness of Android has helped expand choice, lower prices and democratize access to smartphones and apps. It’s the only example of a successful open source mobile operating system,” said Oliver Bethell, senior director of competition at Google.
“We favor a way forward that avoids stifling choices and opportunities for UK consumers and businesses, and without risk to the UK’s growth prospects,” he added.
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 thriving 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 the trust of our users.”
The CMA’s investigation will add to the worldwide scrutiny both companies are already facing over their dominance of the smartphone market.
Apple clashed with Brussels several times last year over enforcement of the Digital Markets Act, making changes to its platform after the European Commission accused the iPhone maker of failing to comply with its “internet gatekeeper” rules.
If granted, UK SMS status lasts for a period of five years and companies can be fined up to 10 per cent of global turnover for breaching the code of conduct.
The CMA said it would accept comments before February 12 and complete its investigation by October 22.
