UK Regulator Plans Probe Into Apple, Google Over Mobile Browsing -- Update
June 10 2022 - 6:37AM
Dow Jones News
By Kyle Morris
The U.K.'s Competition and Markets Authority said Friday that it
is planning an investigation into Apple Inc. and Google concerning
their position in the mobile browsing market.
The regulator is also looking into Apple's restrictions on cloud
gaming through its App Store, as well as the app store payment
practices of Alphabet Inc.'s Google.
A report by the CMA found that Apple and Google have an
effective duopoly on mobile ecosystems that enables them to
exercise a stranglehold over the markets, which include operating
systems, app stores and web browsers on mobile devices.
Without intervention, the companies are likely to strengthen
their positions in the sector, further restricting competition, the
regulator said.
Some 97% of U.K. mobile web browsing in 2021 was on browsers
powered by either Apple or Google. Apple bans alternatives to its
own browser engine on its devices and the CMA said it is concerned
this severely limits the potential for competition.
The CMA will also investigate Apple's practices in regards to
cloud gaming, as it says the company blocks the emergence of cloud
gaming services in its App Store which pose a threat to
revenue.
The regulator's market investigation will assess competition
concerns relating to mobile browsers and cloud gaming and decide if
any action is needed. This could include making legally binding
orders requiring changes to be made to Apple's and Google's
practices, it said.
"When it comes to how people use mobile phones, Apple and Google
hold all the cards. As good as many of their services and products
are, their strong grip on mobile ecosystems allows them to shut out
competitors, holding back the British tech sector and limiting
choice," CMA Chief Executive Andrea Coscelli said.
Apple said it respectfully disagrees with a number of
conclusions reached in the report. "We will continue to engage
constructively with the Competition and Markets Authority to
explain how our approach promotes competition and choice, while
ensuring consumers' privacy and security are always protected," it
said.
Google noted that it will review the report and continue to
engage with the CMA.
The consultation on the proposed market investigation will close
on July 22.
Write to Kyle Morris at kyle.morris@dowjones.com
(END) Dow Jones Newswires
June 10, 2022 06:22 ET (10:22 GMT)
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