Apple and Google investigated by UK regulator over mobile platforms

Open Editor’s Digest for free

FT editor Rula Khalaf picks her favorite stories in this weekly newsletter.

Britain’s competition watchdog has launched an investigation into Apple and Google’s mobile platforms, just days after the government forced it to give up its chair in a bid to reduce the regulatory burden on businesses.

It Competition and Markets Authority said It will examine on Thursday whether makers of the iPhone and Android smartphone operating systems should face additional scrutiny of how they operate their mobile platforms in its second hearing under the new digital markets regime. during the investigation.

The announcement comes just two days after the Govt sacked Markus Bokerink as chairman of the CMA, amid concerns the regulator was not focused enough on growth.

The surprise move has led many to speculate that Big Tech may be treated more leniently by the antitrust regulator.The government appointed Doug Gurry, who previously ran Amazon’s UK business, as interim chairman of the CMA.

The CMA said on Thursday it would look into how iPhone and Android smartphone makers compete with each other, whether they favor their own apps and services and whether developers are treated fairly.

“More competitive mobile ecosystems can spur new innovations and new opportunities for a range of services that millions of people use, whether they’re app stores, browsers or operating systems,” said Sarah Cardell, CEO of CMA.

“Better competition could 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,” ​​he 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 conduct requirements similar to the EU’s Digital Markets Act.

Last week, CPA opened its first such case, rlooking at Google’s dominance in search and advertising.

The CMA is already in the process of investigating Google and Apple in separate probes into mobile web browsers and cloud gaming, which provisionally found the two companies to be “suppressing competition” in browsers.

“Android’s openness has helped expand choice, lower prices, and democratize access to smartphones and apps. It’s the only example of a successful and viable open source mobile operating system.” said Oliver Bethel, Google:senior director of the competition.

“We favor a way forward that avoids stifling choice and opportunities for British 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 sector and jurisdiction in which we operate, and our focus is always on the trust of our users.”

The CMA’s investigation will add to the global scrutiny the two companies already face over their dominance of the smartphone market.

Last year, Apple clashed several times with Brussels over the enforcement of the Digital Markets Act, making changes to its platform after the European Commission accused the iPhone maker of failing to comply with “online gatekeeper” rules.

If appointed, the UK’s SMS status lasts for 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 until February 12 and complete its investigation by October 22.