UK opens probe into Google’s and Apple’s mobile platforms

The UK’s competition watchdog has launched an investigation into Apple’s and Google’s mobile platforms, just days after the government forced out its chair as part of a push to cut the regulatory burden on business.

The Competition and Markets Authority said on Thursday it would examine whether the creators of the iPhone and Android smartphone operating systems should be subjected to extra scrutiny over how they run their mobile platforms, in its second investigation under the new digital markets regime.

The announcement comes just two days after the government ousted Marcus Bokkerink as chair of the CMA, amid concerns the regulator was not sufficiently focused on growth.

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

On Thursday, the CMA said it would examine how Apple and Google were competing with each other, whether they favored their own apps and services, and whether developers were treated fairly.

“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,” said Sarah Cardell, chief executive of the CMA.

“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,” she added.

As part of the UK’s Digital Markets, Competition and Consumers 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, the CMA opened its first such case, reviewing Google’s dominance in search and advertising.

The CMA is already in the process of probing Google and Apple in a separate investigation into mobile web browsers and cloud gaming, which has provisionally found the two companies were “holding back competition” in browsers.

“Android’s openness has helped to expand choice, reduce 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 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,” 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 where we operate, and our focus is always the trust of our users.”

The CMA’s probe will add to the worldwide scrutiny that both companies are already facing over their dominance of the smartphone market.

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

If designated, the UK’s “strategic market status” lasts for a five-year period, and companies can be fined up to 10 percent of global turnover for breaching conduct rules.