The U.K.’s Competition and Markets Authority (CMA) has provisionally recommended investigating tech giants, Apple (AAPL) and Google (GOOGL), for their dominance in mobile web browsers and app ecosystems. The announcement followed an independent inquiry group’s in-depth review of the mobile browser market.
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CMA Proposes DMCC Act Investigation of Apple and Google
The CMA suggests investigating the tech giants under the new Digital Markets, Competition and Consumers Act (DMCC), set to take effect next year. Similar to the EU’s Digital Markets Act, the DMCC allows the CMA to designate companies with “Strategic Market Status” (SMS). This designation signifies substantial market power in certain digital businesses. Under this act, companies with SMS status may face restrictions such as banning “self-preferencing” of their own services, mandating interoperability, and eliminating anti-competitive behaviors.
Furthermore, it would be necessary for the CMA to undertake a formal investigation before granting SMS status. The CMA has invited comments on its provisional findings until December 13, with a final decision expected by March 2025.
CMA Flags Issues with Apple’s App Store and Google’s Search Deal
Additionally, the CMA inquiry group highlighted Apple’s App Store policies, which it claims stifle innovation. For instance, smaller developers have struggled to deploy “progressive” web apps. These apps function outside traditional app stores, but this technology is unable to take off due to limitations on iOS devices.
The CMA inquiry group also found a revenue-sharing agreement between Apple and Google, which makes Google the default search engine on iPhones. This arrangement, according to the CMA, “significantly reduces their financial incentives to compete in mobile browsers on iOS.”
Apple Pushes Back
In response, Apple disagreed with the findings of the report, stating the DMCC’s proposed interventions could harm user privacy and innovation. An Apple spokesperson told CNBC, “Apple 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.”
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