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Britain’s antitrust watchdog targeted on Wednesday Google And Apple For their “strategic” roles in the mobile ecosystem, opening the door for regulators to impose changes in their business practices to improve competition.
Competition and Markets Authority Increased scrutiny of two US technology companies by labeling them with a “strategic market position”. It follows separate investigations the CMA opened earlier in the year into Google’s Android and Apple’s iOS using newly acquired digital markets rules designed to protect consumers and businesses from unfair practices. big tech Companies.
The regulator’s decision was expected. It proposed the classification in July but sought feedback before issuing its final decision.
Google has called the decision “disappointing, unbalanced and unfair” and has previously argued that Android has saved app developers money because they do not need to adapt to different operating models for each smartphone.
“Following today’s decision from the CMA, our mobile business in the UK faces new – and as yet uncertain – rules,” said Oliver Bethell, Google’s senior competition director. “The CMA’s next steps will be vital if the UK digital markets regime is to deliver on its promise to be pro-growth and pro-innovation.”
Google was given the “strategic market status” designation earlier this month, when the CMA used its new powers for the first time by targeting the company’s role in a separate investigation into the online search advertising market.
The CMA says that being labeled a “strategic market position” does not imply any wrongdoing. But it does mean that the watchdog has the power to use targeted measures to open up competition and ensure consumers and businesses are treated fairly.
The watchdog has said that Apple and Google hold an “effective monopoly”, with 90–100% of mobile devices in the UK running any mobile platform. Its investigation found several concerns affecting businesses and consumers such as unpredictable app reviews, inconsistent App Store search rankings, and commissions of up to 30% on in-app purchases.
The CMA had unveiled separate “road maps” for each company, outlining potential measures to improve competition, including “fair and transparent” app reviews and app store rankings, to give “certainty” to British app developers.
The watchdog also recommended app developers allow users to run apps on channels outside the App Store where users can make purchases, mirroring similar efforts. European Union,
Apple has said it is concerned that the CMA’s steps could increase risks to users and jeopardize the UK’s “developer economy”.