UK Launches Antitrust Probes Against Apple, Google Mobile Systems
UK antitrust watchdog has commenced investigation into the big mobile ecosystems owned by US big techs, Google and Apple. CNBC reported that the focus of Apple-Google antitrust probes is to establish whether the companies have violated the country’s stringent digital competition regulations.
Market Status
Through the UK antitrust probes, the Competition and Markets Authority wants to determine whether the two tech giants hold strategic market dominance in their mobile systems. The watchdog will be investing their market status in app stores, operating systems, and smartphone-based browsers.
“More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems. Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple’s and Google’s platforms,” Sarah Cardell, CMA CEO said in a statement.
The UK Google antitrust investigation comes just a day after Indonesia fined the search giant $12.6 million for monopolising its Google Play Store billing system. According to the Competition and Markets Authority, the UK investigations into the Apple and Google mobile empires will “explore the impact on people who use mobile devices and the thousands of businesses developing innovative services or content such as apps for these devices.”
Dan Aldridge, a Labour MP, noted that CMA’s decision to launch the Apple Google antitrust investigation was an important step towards promoting fair competition in the UK digital economy.
“Companies such as Apple and Google decide which ones we access and how much we pay,” he said in an emailed comment Thursday. “These investigations will examine these practices, as they can stifle innovation and lead to higher prices for consumers.”
Big Tech Reactions
Both Apple and Google have reacted to the UK’s move to investigate their systems for antitrust practices. Apple has emphasized its commitment to ensure that users trust its products and highlighted its commitment to engage the UK watchdog constructively.
“Apple believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users. In the U.K. alone, the iOS app economy supports hundreds of thousands of jobs and makes it possible for developers big and small to reach users on a trusted platform. We will continue to engage constructively with the CMA as their work on this matter progresses,” an Apple spokesperson said.
The Senior Director for Competition at Google, Oliver Bethell noted that the Android platform, which is owned by the company has given users more choices, democratised access to apps and smartphones, and lowered user prices.
“It’s the only example of a successful and viable open-source mobile operating system,” said Bethell.
She urged for a solution that will not stifle opportunities and options for UK users and businesses, and one that does not put growth prospects in the country at risk.
Regulatory Powers
Early this week, the UK hired former Amazon UK country manager Doug Gurr to chair the Competition and Markets Authority. The watchdog’s regulatory powers have been strengthened after the UK’s new law, the Digital Markets, Competition and Consumers Act (DMCC) took effect this year.
This new law seeks to ensure that anti-competitive practices do not thrive in the digital market. Under the DMCC, the regulatory authority can impose the strategic market status tag on big companies that demonstrate significant market power in a specific digital activity. The UK antitrust body can also impose changes to discourage potential antitrust practices from any company that is assigned the strategic market status.
The competition regulator says that all mobile devices in the UK market come with pre-installed Android or iOS systems. It also claims that Apple and Google App Stores and browsers have leading or exclusive positions on their platforms, compared to other products. The regulator will be examining these aspects during the investigation.
