UK regulator seeks special status for Apple, Google that may mean changes in Big Tech

Britain's anti-trust watchdog has proposed labelling Google's and Apple's mobile ecosystems with “strategic market status”, which would mandate changes at the Big Tech companies to improve competition.

The Competition and Markets Authority's announcement on 23 July, Wednesday, follows separate investigations it opened at the start of the year into Google's Android and Apple's iOS, using newly acquired digital market regulations designed to protect consumers and businesses from unfair practices by Big Tech companies.

The watchdog said Apple and Google hold an “effective duopoly”, with 90–100 per cent of mobile devices in Britain running on either mobile platform. Its investigation found a range of concerns affecting businesses and consumers such as unpredictable app reviews, inconsistent app store search rankings and commissions on in-app purchases of as much as 30 per cent.

The CMA also unveiled separate “roadmaps” for each company, outlining possible measures to improve competition, including “fair and transparent” app reviews and app store rankings to give British app developers “certainty”.

The watchdog also recommends letting app developers “steer” users to channels outside of app stores where users can make purchases, mirroring similar efforts by the European Union.

Google called the watchdog's decision “disappointing and unwarranted” and said Android has saved app developers money because they didn’t have to adapt to different operating models for each smartphone.

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It's “crucial that any new regulation is evidence-based, proportionate and does not become a roadblock to growth in the UK,” the company's senior director of competition, Oliver Bethell, said.

Apple said it was worried the CMA's moves could pose increase risks for users and jeopardise the UK’s “developer economy”.

“We're concerned the rules the UK is now considering would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors,” Apple said in a statement. “We will continue to engage with the regulator to make sure they fully understand these risks.”

The regulator is seeking feedback on its proposal and has until October 22 to make a final decision.

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