If companies fall foul of regulations, U.K. watchdogs can hand out fines and impose remedies to boost competition
The tough new digital market rules that kicked in this month mean that the CMA can impose conduct requirements on firms that include making it easier for users to download apps and pay for content outside of Apple and Google’s own products.
Virtually all mobile devices sold in the U.K. are pre-installed with either iOS or Android the CMA said. “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.”
Should companies continually fall foul of the regulations the watchdog can hand out hefty fines and impose strict remedies to boost competition.
Apple believes in thriving and dynamic markets where innovation can flourish,” a spokesperson said in a statement. “We will continue to engage constructively with the CMA as their work on this matter progresses.”
The CMA opened a probe into Google’s search and online ads business, the first such case where firms can be designated as having so-called strategic market status.
“Android’s openness has helped to expand choice, reduce prices and democratize access to smartphones and apps,” said Oliver Bethell, Google’s senior director of competition. “We favour a way forward that avoids stifling choice and opportunities for U.K. consumers and businesses alike, and without risk to U.K. growth prospects.”