Seeking growth, UK competition regulator probes Apple and Google
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Apple and Google now face regulatory probes in the ailing UK market, where the Competition and Markets Authority (CMA) hasconfirmedit intends to investigate both companys mobile ecosystems under new digital market laws. This is separate from anongoing UK probeinto mobile browsers and cloud gaming that also affects the two companies.The CMA intends to look into the operating systems, app stores, and web browsers of Apple and Google to see whether they should be given Strategic Market Status. If they meet that grade, they will be subject to rules dictated by the CMA. Those dictates could extend further even than European demands have gone under the Digital Markets Act, withhuge fines for any non-compliance.For example, the UK regulator might be able to force Apple and Google to open up access to key functionality for use by app developers or force Apple to open up app distribution to third-party services on its platforms.What will the investigation explore?The CMA plans to look at:The extent of competition between and within mobile ecosystems and what barriers prevent rivals from offering products and services on Apples and Googles platforms.Possible leveraging of Apples and Googles market power to favor their own apps and services.Potential exploitative conduct, such as forcing unfair terms and conditions on developers.The concern is that Apple and Google together dominate the mobile industry, which means they exert considerable influence over much of the content, services and technological development provided on a mobile device, the CMA said.Thats true, of course, as the big US tech success stories build the operating systems developers use to provide apps and services on the platforms. Given the extensive quantity of personal data gathered by mobile devices, the privacy argument both companies will use in their defense is a viable one.What the CMA wantsNewly appointed CMA Chief Executive Sarah Cardell said: The operating systems, apps and browsers installed on our phones and tablet devices act as our gateway into the digital world, whether that is communicating with our friends and loved ones, buying from businesses or accessing creative content. More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems.In the fantasy economics at play here, the CMA argues that better competition could boost growth in the UK, enabling UK businesses to offer new and innovative types of product and services on Apples and Googles platforms and introduce innovative new products and services.Saying the quiet part out loud, the regulator suggests these amazing innovations could include AI products and services and new types of super apps accessed through a mobile browser. The latter is likely music to the ears of Elon Musk, who has long dreamed of turning X into such a service. It must also be noted thatAI is certainly part of the intention here; this likely ends with a full-front battle regarding user data privacy.What Apple saidApple, of course, doesnt agree that the ecosystem it created from scratch, armed with nothing but a handful of iMacs and a Unix-based operating system is anti-competitive. Apple believes in thriving and dynamic markets where innovation can flourish, the company said.Not for the first time, Apple also argued (correctly) that it faces,competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.It took pains to note that its platform-based ecosystem delivers big benefits to the UKs anemic economy. In the UK 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 company said.Apple CEO Tim Cook made similar arguments when he visited the UK to meet King Charles and speak to the incumbent Prime Minister. The implication, of course, is that regulations that damage the trust between consumers and the brand will threaten existing digital business and further harm consumers and the UK economy. Some might see this as a warning against deep state interference in something as complex as OS development.Perhaps dialog will help?We will continue to engage constructively with the CMA as their work on this matter progresses, the Apple statement said. Well see how it goes.What happens next?The CMA now intends to speak with a range of stakeholders, including device manufacturers, software developers and user groups. It also intends to gather evidence from Apple and Google before reaching a decision by the end of October 2025. Anyone with an interest in these investigations is invited to comment until Wednesday 12 February, the CMA said. If thats you, you canprovide your own insights to the UK regulator via this website.With investigations extendingacross its businessin almost every key market, Apple will certainly hope forsupport from the home nation it has delivered so much economic benefit to, as the alternative will be fundamental changes in its business. The latter, I feel, has become inevitable at this point, and Id argue that the company should switch to establish new business models that it can control before it is forced to adapt to business structures over which it has none.Its noteworthy that newly inaugurated US President Donald Trump s already pushing back on European efforts to regulate US tech firms. These are American companies whether you like it or not, Trump said at the World Economic Forum in Davos. They shouldnt be doing that. Thats, as far as Im concerned, a form of taxation. We have some very big complaints with the EU.I expect the UK should anticipate slaps with the same stick.You can follow me on social media! Join me onBlueSky, LinkedIn,Mastodon, andMeWe.
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