Google’s Android and Apple’s iOS are facing a new investigation from Britain’s competition watchdog, which launched the investigation targeting the two tech giants’ mobile phone ecosystem under new powers to crack down on digital market abuse. Announced on Thursday.
The Competition and Markets Authority said it has launched separate investigations to determine whether the mobile ecosystem controlled by Apple and Google should be granted “strategic market status” that would mandate changes to the companies’ practices.
The watchdog is again beefing up its newly acquired regulatory powers after new digital markets rules came into effect at the beginning of the year. The CMA has already used new rules to launch an investigation into Google’s search advertising business, which are designed to protect consumers and businesses from unfair treatment by Big Tech companies.
The new investigation will examine whether Apple or Google’s mobile operating systems, app stores and browsers give either company a strategic position in the marketplace. The watchdog said it is interested in the level of competition and any barriers preventing rivals from offering competing products and services.
The CMA will also look at whether Apple or Google are favoring their own apps and services, which it said “often come pre-installed and are prominently placed on iOS and Android devices.” Google’s YouTube and Apple’s Safari browser are two examples of apps that come with Android and iOS, respectively.
And it will investigate “exploitative conduct,” such as whether Apple or Google forces app makers to agree to “unfair terms and conditions” as a condition of distributing apps on their app stores.
The regulator has time till October to complete the investigation. It says this could force any company, for example, to open up access to key functions that other apps need to operate on mobile devices. Or it could force them to allow users to download apps outside their app stores.
Both Google and Apple said they are working “constructively” with the UK regulator on the investigation.
Google said, “Android’s openness has helped expand choices, lower prices, and democratize access to smartphones and apps. It is the only example of a successful and viable open source mobile operating system.”
The company said it “supports a path forward that avoids suppressing choices and opportunities for UK consumers and businesses, and is without risk to the UK’s growth prospects.”
Apple said it “believes in thriving and dynamic markets where innovation can flourish. We face competition in every sector and jurisdiction where we operate, and our focus is always on the trust of our users. “
