Apple and Google hit by UK probe into mobile dominance
Apple Inc. and Alphabet Inc. (Google”s parent company) were hit with UK antitrust investigations over concerns their dominance in mobile services is distorting the market and putting up barriers to entry for competitors..The Competition and Markets Authority will probe whether Apple and Google’s mobile operations, including operating system, app stores and web browsers impose blocks on rival products. .The announcement comes a day after the ruling Labour Party ousted the CMA’s chair and replaced him with former Amazon.com Inc executive Doug Gurr, sending a strong signal that Prime Minister Keir Starmer wants regulators to help not hinder economic growth..The tough new digital market rules that kicked in this month mean that the CMA can impose conduct requirements on firms that include making it easier for users to download apps and pay for content outside of Apple and Google’s own products. .Virtually all mobile devices sold in the UK are pre-installed with either iOS or Android the CMA said. “This means Apple and Google are also able to exert considerable influence over much of the content, services and technological development provided on a mobile device.”.Should companies continually fall foul of the regulations the watchdog can hand out hefty fines and impose strict remedies to boost competition..Apple believes in thriving and dynamic markets where innovation can flourish,” a spokesperson said in a statement. “We will continue to engage constructively with the CMA as their work on this matter progresses.” .The CMA opened a probe into Google’s search and online ads business, the first such case where firms can be designated as having so-called strategic market status..“Android’s openness has helped to expand choice, reduce prices and democratize access to smartphones and apps,” said Oliver Bethell, Google’s senior director of competition. “We favor a way forward that avoids stifling choice and opportunities for UK consumers and businesses alike, and without risk to UK growth prospects.”
Source: Bloomberg Wire