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UK competition watchdog investigates Apple and Google mobile platforms

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UK competition watchdog investigates Apple and Google mobile platforms

The UK’s competition watchdog has launched investigations into the impact of Apple and Google’s mobile platforms on consumers and businesses, days after the government faced criticism for installing a former tech executive as the organisation’s new president. .

The Competition and Markets Authority (CMA) will investigate the mobile operating systems, app stores and browsers of tech companies to determine whether both companies need personalized guidelines to regulate their behavior.

The move comes after the government denied being “in the pocket of big tech” after appointing Doug Gurr, former country director of Amazon UK, to chair the CMA.

The CMA said it will analyze the impact of Google and Apple’s mobile platforms on consumers and businesses, including app developers.

The watchdog said virtually all smartphones sold in the UK have Apple’s iOS or Google’s Android operating systems pre-installed, while their respective app stores and browsers have prime positions on their platforms compared to products and services. from third parties.

The watchdog will determine whether Apple and Google should be designated with “strategic market status” under a new regulatory regime introduced under the Digital Markets, Competition and Consumer Act (DMCC). If they are deemed to have that status, the CMA can impose “conduct requirements” or force changes such as making it easier for users to download apps outside of Apple and Google’s app stores.

Sarah Cardell, chief executive of CMA, said both companies’ mobile platforms are consumers’ gateways “into the digital world.”

“A more competitive mobile ecosystem could foster new innovations and new opportunities in a range of services used by millions of people, whether app stores, browsers or operating systems,” he said. “Better competition could also drive growth here in the UK, with companies able to offer new and innovative types of products and services on Apple and Google platforms.”

The CMA said it would complete its investigation by October 22. Last week, it opened its first investigation under the DMCC into Google and the impact of its search and advertising practices on consumers, news publishers, businesses and rival search engines.

Alex Haffner, a partner at British law firm Fladgate, said the move by Apple and Google was “totally expected” but is taking place against a political backdrop of a government seeking strong economic growth.

“What’s more interesting is how this fits into the very clear direction the CMA is receiving from central government to ensure regulation is applied consistently with its pro-growth agenda,” he said.

On Wednesday, Business Minister Justin Madders said the government had not been captured by Big Tech after appointing Gurr. Speaking in parliament, Madders said: “Competition is vital to driving investment and growth and the CMA’s operational independence will be maintained.”

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The GMB union criticized Gurr’s hiring, describing it as a “slap in the face to workers”, while Ethical Consumer, a campaigning consumer cooperative, said it was “like something out of the Donald Trump playbook”.

Google senior competition director Oliver Bethell said Android was the “only example” of a successful open source mobile operating system, meaning it is freely available to developers.

He said: “We favor a way forward that avoids stifling choice and opportunity for UK consumers and businesses alike, and without risk to the UK’s growth prospects.”

Apple said its app store ultimately supported hundreds of thousands of jobs in the UK and that the company would “engage constructively” with the CMA. An Apple spokesperson said: “We face competition in all segments and jurisdictions where we operate, and our focus is always on the trust of our users.”

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