UK Competition Authority Launches Investigation into Apple and Google Mobile Market Dominance

The UK antitrust competition authority is launching an official investigation into the dominance of American big tech companies Apple and Google in the UK mobile phone web browser market.

Reuters Yonhap News

According to Bloomberg, the UK Competition and Markets Authority (CMA) announced on the 23rd (local time) that it will investigate whether Apple and Google hold a 'strategic market status' in the mobile ecosystem, including operating systems (OS), app stores, and browsers.

Under the Digital Markets Act (DMA) enacted this year, the CMA can designate companies with strategic market status in specific digital activities, impose corrective measures or requirements on designated companies, or undertake 'competition-friendly interventions.'

The designation criteria include having substantial and entrenched market dominance in digital activities related to the UK, holding a strategically important position, and having global revenues exceeding ?25 billion (44 trillion KRW) or UK revenues exceeding ?1 billion (1.7 trillion KRW). To be designated as a company with strategic market status, it must have substantial and entrenched market dominance in digital activities related to the UK while holding a strategically important position.

The CMA plans to examine how Apple and Google's OS, app stores, and mobile browsers compete in the market, and whether there are barriers preventing other products or services from being offered on Apple and Google platforms. Additionally, the investigation will cover whether the use of OS or the distribution of applications (apps) and browsers favors their own apps or services, whether app developers are forced into unfair contract terms, and whether users find it difficult to actively choose apps. The CMA added that if designated as companies with strategic market status, it will also consider whether to require corrective actions upon designation.

In response, Apple stated, "We believe in the value of a dynamic market where innovation thrives. We will continue to cooperate constructively with the CMA on this matter." Google said, "The openness of Android has helped democratize access to smartphones and apps, including lowering prices," adding, "We prefer ways that do not suppress the choices and opportunities of UK consumers and businesses."