Apple (NASDAQ:AAPL) and Alphabet’s (NASDAQ:GOOGL) Google are facing an in-depth investigation by the U.K.’s Competition and Markets Authority. The regulator has accused both companies of dominating the mobile browser market.
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The investigation is a result of the CMA’s survey, which was launched in June 2022. It concluded that both tech giants have significant control over mobile browsers. Further, Apple has been charged with controlling cloud gaming through its app store.
Several browser vendors, web developers, and cloud gaming service providers have backed the investigation arguing that the current rules are “harming their businesses, holding back innovation, and adding unnecessary costs.”
As per the regulator, both mobile web browsing and cloud gaming are key areas of mobile ecosystems as they are widely used by UK consumers and businesses. The CMA is of the opinion that weak competition in these areas is impacting users’ experiences by limiting their choices.
Interestingly, CMA has 18 months to complete its deep research on mobile ecosystems. Based on its findings, the regulator may impose necessary remedial measures on the companies.
Is Apple a Good Buy?
Apple appears to be one of the stocks strongly favored by analysts. On TipRanks, AAPL stock has a Strong Buy consensus rating based on 24 Buy and four Hold recommendations. The average stock price target of $180.48 implies 20.18% upside potential.
Is Alphabet a Buy or Sell Stock?
GOOGL stock is a Strong Buy as well. It has 28 unanimous Buy recommendations. Also, the stock average price forecast of $129.18 implies 33.11% upside potential.
