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london – apple and Google May face competition investigation over dominance of UK mobile web browsers and apps
The UK Competition and Markets Authority published a report on Friday containing an interim decision from an independent panel commissioned by the regulator to conduct an in-depth review of the mobile browser market.
In the report, the organization recommended that the CMA investigate Apple and Google’s activities in mobile ecosystems under the new Digital Markets, Competition and Consumer Act (DMCC), a new UK law that will come into effect next year and aims to prevent mobile ecosystems. Anti-competitive behavior in the system.
DMCC is similar to the EU’s Digital Markets Act. It enables the CMA to designate companies as having a “strategic market position” (SMS), meaning they have substantial market power in a specific digital business.
Under the rules, the CMA can impose significant behavioral changes on companies with SMS status, including ending “self-preference” for their own services, requiring interoperability (essentially allowing one piece of software to work smoothly with another) and banning anti-competition behavior behavior.
A formal investigation is required by the CMA to determine the status of the SMS.
Regarding Apple in particular, the CMA panel said it was concerned that the tech giant’s App Store rules “restrict other competitors from offering new and innovative features that could benefit consumers” – for example, faster iPhone apps The web page loads.
It added that many smaller UK developers have said they want to use “progressive” web apps – which allow companies to offer apps outside of app stores – but the technology “is not available on iOS devices” Completely universal.”
The group also said it found a revenue-sharing agreement between Google and Apple to make Google the default search engine on the iPhone “significantly reduces their financial incentive to compete in the iOS mobile browser.”
Margot Daly, chair of the CMA’s independent investigative panel, said in a statement: “The market works best when rival companies are able to develop and bring innovative choices to consumers.” She added, “Competition between different mobile browsers It’s not effective and it’s holding back UK innovation”
Apple and Google did not immediately comment when contacted by CNBC.
The CMA panel also looked at the restrictions on the distribution of game services on Apple’s mobile app distribution platform. However, the US tech giant has now decided to drop this investigation after it decided to allow cloud gaming services on the App Store.
The regulator said relevant parties have until December 13 to comment on its provisional findings. A final decision is expected in March 2025.
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