British Regulator Aims to Regulate Apple and Google’s Mobile Platforms with New Digital Market Authority

The competition watchdog in Britain is investigating Google’s Android and Apple’s iOS mobile phone ecosystems to address potential digital market abuses. The investigations were announced by the Competition and Markets Authority on Thursday. They are utilizing new powers to regulate and ensure fairness in the tech industry.

This regulatory body has initiated separate inquiries to assess whether Apple and Google’s control over the mobile ecosystems warrants a “strategic market status.” This designation could lead to enforced changes in how these companies operate within the digital market space.

With the implementation of new digital market rules at the beginning of the year, the Competition and Markets Authority is actively leveraging its regulatory authority. Their focus is on protecting consumers and businesses from any unfair practices that may be perpetrated by major tech corporations. This investigative approach extends beyond the mobile ecosystems to include Google’s search ads business.

The new investigations will examine whether Apple or Google’s mobile operating systems, app stores and browsers give either company a strategic position in the market. The watchdog said it’s interested in the level of competition and any barriers preventing rivals from offering competing products and services.

The CMA will also look into whether Apple or Google are favoring their own apps and services, which it said “often come pre-installed and prominently placed on iOS and Android devices.” Google’s YouTube and Apple’s Safari browser are two examples of apps that come bundled 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 condition for distributing apps on their app stores.

The regulator has until October to wrap up the investigation. It said it could force either company to, for example, open up access to key functions other apps need to operate on mobile devices. Or it could force them to allow users to download apps outside of their own app stores.

Both Google and Apple said the work “constructively” with the U.K. regulator on the investigation.

Google said “Android’s openness has helped to expand choice, reduce prices and democratise access to smartphones and apps. It’s the only example of a successful and viable open source mobile operating system.”

The company said it favors “a way forward that avoids stifling choice and opportunities for U.K. consumers and businesses alike, and without risk to U.K. growth prospects.”

Apple said it “believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.”