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Roula Khalaf, Editor of the FT, selects her favorite stories in this weekly newspaper.
The UK competition agency has launched an investigation into the mobile platforms of Apple and Google, just days after the government forced its seat as part of a move to reduce the regulatory burden on business.
The Competition and Markets Authority said on Thursday would examine whether iPhone and Android smartphone operating system developers should be subject to more scrutiny in how they run their mobile platforms, in their investigation of both under the new digital marketing regime.
This announcement comes just two days after the government he dismissed Marcus Bokkerink as chairman of the CMA, amid doubts, the regulator was not focused enough on growth.
The surprise move has many speculating that Big Tech could be caught even more lightly by the antitrust regulator. The government has appointed Doug Gurr, who previously ran Amazon’s UK business, as interim chairman of the CMA.
On Thursday, the CMA said it will examine how Apple and Google compete, whether they like their apps and services, and whether developers are treated fairly.
Sarah Cardell, chief executive of the CMA, said: “More competitive ecosystems can promote innovation and new opportunities in the range of services that millions of people use. , be it app stores, browsers or operating systems.”
He added: “Better competition could increase growth here in the UK, with businesses able to offer new types of products and services on the Apple and Google platforms.”
As part of the UK’s Digital Markets, Competition and Consumers Act, which came into force this month, the CMA can designate a small group of companies with a “strategic market position”, which imposes ethical requirements, which similar to the EU’s Digital Markets Act.
Last week, the CMA opened its first case, rtaking a closer look at Google’s search and marketing capabilities.
The CMA is already in the process of investigating Google and Apple in separate investigations into web browsers and online games, which have temporarily found that the two companies are “restricting competition” in browsers .
“The openness of Android has helped to expand choice, reduce prices and democratize access to smartphones and applications. It is one example of a successful and effective mobile operating system,” said Oliver Bethell, Google‘s executive director of the competition.
He added: “We are choosing a path that avoids choices and opportunities that disrupt UK consumers and businesses, and without risking UK growth prospects.”
applewhich says its app platform supports hundreds of thousands of jobs in the UK, said it would “continue to engage constructively” with the CMA.
“Apple believes in successful and dynamic markets where innovation can thrive,” the company said. “We face competition in every sector and region in which we operate, and our focus is always on the trust of our users.”
The CMA investigation will add to the global scrutiny that both companies already face over their dominance of the smartphone market.
Apple clashed with Brussels several times last year over the implementation of the Digital Markets Act, making changes to its platform after the European Commission accused the iPhone maker of failing to follow its “online gatekeeper” rules.
If elected, the UK’s “strategic market status” lasts for five years and companies can be fined up to 10 per cent of their global turnover for breaching the rules.
The CMA said it would receive comments by February 12 and complete its investigation by October 22.