The UK Competition and Markets Authority has launched an investigation into Apple and Google. The regulator is considering granting a strategic market status to the companies.
Overview of the Situation with Apple and Google
Earlier this week, the UK Competition and Markets Authority (CMA) announced it would investigate Apple and Google’s influence on mobile operating systems and digital platforms. This probe was initiated in January to assess if these firms have excessive market power.
Strategic Market Status and Its Implications
Under the Strategic Market Status (SMS), companies deemed to have substantial market power may be required to adjust practices that hinder competition. The CMA’s investigation thoroughly examines multiple aspects of mobile services, including OS platforms and app marketplaces, to identify potentially unfair developer agreements.
Response of Companies to Regulator's Demands
Apple and Google have responded to CMA's demands, with Apple warning that the proposals could undermine user privacy and security. Google stressed that any new regulations must be evidence-based and should not obstruct growth in the UK economy.
The CMA's increased scrutiny of Apple and Google highlights growing concerns regarding competition in digital markets, which may lead to significant changes in the practices of both companies.
