The growing power of tech giants is facing increasing scrutiny in markets around the world.
In the UK, regulators are turning their attention to Apple and Google, according to Ziare.
The Competition and Markets Authority (CMA) has released a preliminary report suggesting a formal investigation into the dominance of these companies in mobile browser and app markets.
The report, issued on November 22, follows an in-depth review conducted by an independent panel commissioned by the CMA.
It calls for Apple and Google’s activities to be examined under the upcoming Digital Markets, Competition, and Consumers (DMCC) Act.
This new law, set to take effect next year, aims to curb anti-competitive behavior in digital markets.
Limits Competition and Innovation
The CMA will gain the authority to designate companies with “Strategic Market Status” (SMS).
This status will apply to firms with significant power in specific digital areas and will come with stricter rules to prevent self-preferencing and other anti-competitive practices.
The CMA expressed concern over Apple’s App Store policies. These rules, it claims, limit competition and innovation by preventing faster and more efficient features for consumers.
One example is progressive web applications (PWAs), mobile-friendly websites that act like native apps and can send notifications or be saved on a home screen.
Many developers in the UK are eager to use PWAs, but the technology is not fully supported on iOS devices.
The report also points to a revenue-sharing agreement between Apple and Google that makes Google the default search engine on iPhones.
This arrangement, according to the CMA, reduces financial incentives for competitors in the mobile browser market on iOS.
The investigation, if launched, would aim to promote fairness and innovation in digital ecosystems. The CMA’s efforts mirror a global push to rein in the influence of tech giants.
By implementing the DMCC Act, the UK hopes to create an environment where smaller developers and alternative technologies can compete on equal terms.
