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    U.K. Authorities Probe Apple and Google’s Mobile Market Power

    The Competition and Markets Authority (U.K.’s competition regulator) is deepening its investigation into Apple and Google’s market power over some mobile-device software. The CMA initially proposed an inquiry into the U.S. tech giants in June. On Tuesday, they said they were moving forward with the antirust probe after seeing a positive public consultation response.

    The subject of the investigation will be how companies control their web browsers for mobile devices. They will also look into complaints about Apple’s restriction of cloud gaming on its devices. Market investigations like this one can force companies to alter their business practices for good. However, the CMA cannot impose fines on the business under scrutiny.

     

    In its proposal, the CMA said that Apple’s iOS and Google’s Android are two of the biggest names in mobile ecosystems. The authorities are opening an investigation now because the U.K. recently gave CMA new power over digital markets. The U.K. is late to move on this issue as the European Union has already armed its authorities to tackle such issues.

     

    Separately, the CMA announced a traditional competition investigation into conditions Google places on in-app payments in its mobile store. That probe is similar to one the regulator opened into Apple’s App Store last year and could lead to fines.

     

    Sarah Cardell, the CMA’s interim chief executive, said, “In the meantime, we are using our existing powers to tackle problems where we can. Many U.K. businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google.”

     

    An Apple spokesperson said the company will continue to engage with the CMA to explain its perspective. He added that Apple will demonstrate how its practices promote competition and choice while protecting consumers’ security and privacy. A Google spokesperson said that some of the CMA’s concerns regarding Apple’s platform are inapplicable for Android since it offers a broader selection of apps than any other platform.

     

    Big tech rivals spoke in support of the investigation during the public consultation. Microsoft urged the authorities to take action. They said that Apple and Google’s control over their mobile ecosystems is a growing threat to competition if the situation remains unchanged.

     

    Meta supported the choice to open an investigation into the duo. Meta wants the CMA to look into Apple’s policy change which requires apps to ask iPhone users if they want to be tracked. Since Apple made this change, Meta has suffered significant losses in revenue, and its stock has also dipped in value.

    Many app developers who chose to remain anonymous in CMA’s Tuesday announcement supported the investigation during the public consultation. One developer from a social gaming company said that the policies of the duo’s mobile ecosystem hinder the gamers’ ability to play whenever they are online. These policies protect Apple and Google’s market power and revenue at the expense of the user’s experience.

     

    The CMA investigation is the latest to join the growing scrutiny of big tech companies across the globe. The U.S. DoJ, the FTC, and several American states have ongoing investigations and pending lawsuits. In Europe, E.U.’s top antitrust regulator has opened investigations into Apple, Facebook, Google, and Amazon, resulting in a new digital competition law.



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    About the Author

    Kamal Rastogi is a serial IT entrepreneur with 25 yrs plus experience. Currently his focus area is Data Science business, ERP Consulting, IT Staffing and Experttal.com (Fastest growing US based platform to hire verified / Risk Compliant Expert IT resources from talent rich countries like India, Romania, Philippines etc...directly). His firms service clients like KPMG, Deloitte, EnY, Samsung, Wipro, NCR Corporation etc in India and USA.


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