Apple and Google hit with UK antitrust probe into mobile ecosystems
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Britain’s competition regulator on Thursday launched an investigation into Apple and Google’s huge mobile ecosystems to determine whether the tech titans are in breach of the U.K.’s strict new digital competition rules.
The U.K. Competition and Markets Authority said it was opening dual probes into both U.S. tech giants seeking to assess the position they hold in their respective mobile ecosystems, including operating systems, app stores and smartphone-based browsers.
The investigations 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,” the CMA said.
“Apple believes in thriving and dynamic markets where innovation can flourish,” an Apple spokesperson told CNBC. “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,” the Apple spokesperson added. “We will continue to engage constructively with the CMA as their work on this matter progresses.”
Google was not immediately available for comment when contacted by CNBC.
New powers
The CMA now has enhanced regulatory powers after a new U.K. law, called the Digital Markets, Competition and Consumers Act, or DMCC, came into effect at the start of this year.
The DMCC seeks to prevent anti-competitive behavior in digital markets. It can designate large companies that have a significant amount of market power in a certain digital activity as having “Strategic Market Status.”
The CMA now has the power to impose changes to prevent potential anti-competitive behavior from any firm that is given Strategic Market Status.
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