Trouble is looming large on Apple and Google as British competition watchdog following a survey into the mobile ecosystems launched a probe Tuesday to investigate whether these tech giants follow anti-competitive behavior. With this, it is reportedly possible that both the tech giants could loosen their stronghold in the mobile space.
The British watchdog, Competition and Markets Authority, made this decision after concluding its findings of a 356-page report into competition for mobile operating systems and apps. In a scathing attack on the tech giants, the report said that the duo “hold all the cards” in mobile ecosystems. CMA said that this helps Apple and Google to exercise a “stranglehold” over operating systems, app stores and web browsers, as per Politico.
According to CMA research, Apple’s Safari or Google’s Chrome-powered mobile browsers accounted for 97 per cent of all UK mobile web surfing in 2021. The CMA study’s respondents also emphasised how Apple limits cloud gaming through its App Store.
Sarah Cardell, interim chief executive of the CMA, said Tuesday that many UK businesses and web developers say they feel that they are being held back by restrictions set by Apple and Google. “We plan to investigate whether the concerns we have heard are justified and, if so, identify steps to improve competition,” she added.
In a reaction to this, Apple said that it would continue to engage constructively with CMA to explain how its approach is based on a culture where competition and choice thrives. However, Google have not yet made any comments.
What after the investigation concludes?
The in-depth market investigation is required to be finished within 18 months by CMA. In case, the study makes a conclusion that there is an involvement of anti-competitive behavior in the market, CMA can impose remedies on firms and make recommendations to the government on regulation, reported Politico.
This comes in the backdrop of UK Chancellor Jeremy Hunt’s announcement last Thursday where he promised that government would present regulations to combat Big Tech’s anti-competitive abuses. He said that it will be done before May next year with the help of Digital Markets Competition and Consumers Bill. The watchdog CMA’s Cardell said that the new protocols will address “sorts of issues” raised in Apple and Google’s dominance over mobile ecosystems. As per media reports these new regulatory powers could be received by CMA’s Digital Markets Unit as early as October next year.
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