Apple, Google face UK investigations into mobile ecosystems

Published 23/01/2025, 12:32
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Investing.com - Britain’s competition watchdog has launched twin investigations into the so-called "mobile ecosystems" of tech giants Apple (NASDAQ:AAPL) and Alphabet-owned Google (NASDAQ:GOOGL) to see if they have violated UK digital competition rules, according to a statement on Thursday.

The two probes will assess each of these companies’ positions in areas like operating systems, app stores, and browsers that operate on mobile devices, the UK Competition and Markets Authority said in a statement. Investigators will also explore how mobile phone users and businesses who develop content for these devices are impacted by Apple and Google, the CMA added.

Virtually all mobile devices sold in Britain are pre-installed with either Apple’s iOS operating system or Google’s Android platform, both of which include a specific suite of app stores and browsers that have "leading positions" compared to alternative products or services, the CMA argued.

"This means Apple and Google are also able to exert considerable influence over much of the content, services and technological development provided on a mobile device," the CMA said. Under a law that came into effect at the start of 2025, the CMA now has greater powers to crack down on possible antitrust activity in digital markets.

Both Apple and Google have come under scrutiny in recent months over allegations of unfair competitive practices on their operating platforms.

In the UK, iPhone-maker Apple is facing a mass lawsuit brought on behalf of 20 million customers in the country that alleges they were overcharged for app purchases. The suit accuses Apple of abusing its dominant position by placing an unfair 30% commission through its App Store on app developers. Apple has said the case in meritless.

A similar $1.1 billion case alleging that Google also overcharged developers on its Play Store is due to begin later this year.

Elsewhere, the European Union has slapped the search titan with billions of euros worth of fines for perceived anticompetitive behavior. Lawmakers in Brussels have also criticized Apple over the fees in charges app developers.

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