UK regulators intensify antitrust investigations into Apple and Google, may determine they have a "strategic market position"
The UK's competition regulator has intensified its antitrust investigation into Apple and Google, proposing to classify both as companies with a "strategic market position." This investigation focuses on whether the two companies have set barriers to prevent competitors from offering services on their platforms and whether they favor their own applications. If classified as having a strategic market position, regulators will have the authority to demand rectification of improper conduct. Apple and Google also face regulatory challenges in Europe, having recently been fined for violating the Digital Markets Act
According to the Zhitong Finance APP, the UK's competition regulator is intensifying its scrutiny of Apple (AAPL.US) and Google (GOOGL.US). Given the dominant positions of these two companies in the mobile ecosystem, it is proposed that both be classified as enterprises with "Strategic Market Status" (SMS).
The UK Competition and Markets Authority (CMA) launched the relevant investigation in January this year and currently states that these two tech giants possess "large and entrenched market power" in the UK's digital economy, occupying a "strategically significant position."
Once granted "Strategic Market Status," the CMA will have the legal authority to require companies to rectify business practices that harm market competition.
This investigation focuses on whether Apple and Google create barriers for competitors, preventing them from offering competitive products and services on the mobile platforms of these two American tech giants; whether they favor their own applications and services; and whether they impose unfair terms on developers attempting to distribute applications through the App Store or Google Play.
Meanwhile, Apple and Google are facing increasingly severe regulatory challenges across Europe. In April, Apple was fined €500 million for violating the EU's Digital Markets Act (DMA). A month earlier, Google was accused of violating the Digital Markets Act by favoring its own services and restricting app developers. Additionally, Google is still appealing a €4.1 billion antitrust fine from 2018.
Data from Kantar shows that in the UK market, Google's Android system holds a 61% share, while Apple's iOS system accounts for 38%. Google operates the Play Store and Chrome browser, while Apple controls the App Store and Safari browser
