The UK’s Competition Watchdog Launches Investigation into Mobile Platforms

The mobile technology industry has come under increased scrutiny by the UK government in recent weeks. Demands that Apple create a ‘backdoor’ that would allow law enforcement to access encrypted iCloud data has created a major disagreement with the government. Apple has since withdrawn the encryption option for UK users rather than compromise security.

This row follows the announcement that the UK’s competition watchdog, the Competition and Markets Authority (CMA), has also launched an investigation into Apple’s and Google’s mobile platforms. 

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Are mobile makers creating a monopoly?

The CMA announced plans to 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. This is the second investigation under the new digital markets regime, which aims to promote competition and innovation in the tech sector.

According to Sarah Cardell, chief executive of the CMA, the goal of the investigations is to foster a more competitive mobile ecosystem, which could lead to new innovations and opportunities for businesses and consumers alike.

“More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use,” said Cardell. “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.”

Could Apple and Google be subject to new rules?

The CMA can designate a small group of companies as having “strategic market status”, imposing conduct requirements similar to those imposed by the EU’s Digital Markets Act. Last week, the CMA opened its first such case, reviewing Google’s dominance in search and advertising.

In addition to this investigation, the CMA is already investigating Google and Apple’s mobile web browsers and cloud gaming, claiming to have found that the two companies are “holding back competition” in browsers. Oliver Bethell, Google’s senior director of competition, argues that Android’s openness has helped expand choice, reduce prices, and democratize access to smartphones and apps for their users.

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Apple, on the other hand, says its app platform supports hundreds of thousands of UK jobs. It will continue to engage constructively with the CMA. The company believes in thriving and dynamic markets where innovation can flourish. And faces competition in every segment and jurisdiction where it operates.

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Legal challenges across the world

The CMA’s probe adds to the worldwide scrutiny both companies face over their smartphone market dominance. Apple clashed with the EU several times last year. This was over the implementation of the Digital Markets Act. Apple made changes after they accused it of failing to comply with “online gatekeeper” rules.

The UK’s “strategic market status” lasts for a five-year period. The authorities can fine companies operating in those markets up to 10 percent of global turnover for breaching conduct rules. The investigation is likely to have significant implications for both Apple and Google. Regulators and industry experts around the world will closely watch it.

As the tech landscape continues to evolve, it’s clear that competition and innovation are key drivers of growth and progress. The CMA’s investigation is an important step towards promoting a more competitive and dynamic market. Aiming for growth where businesses and consumers can thrive. Whether the investigations successfully achieve those goals remains to be seen.