Apple and Google Under Investigation
The Competition and Markets Authority (CMA) in the United Kingdom has announced that it is investigating Apple and Google’s “effective duopoly” in the mobile phone industry. The CMA said they are taking a “close look at whether they have market power which could be affecting competition across a range of areas.”
The regulator will look at whether the tech titans’ ownership of operating systems, app platforms, and web browsers harms consumers or stifles competition on digital platforms. They said, “The CMA is concerned this could lead to reduced innovation across the sector and consumers paying higher prices for devices and apps, or for other goods and services due to higher advertising prices.”
When it comes to managing internet access, especially via mobile devices, the two tech behemoths are by far the most powerful firms. Apple and Google control the main platforms through which users download applications or access the web on their mobile devices — whether they want to play games, stream music and TV or shop. Regulators are looking to see if this is causing issues for consumers and companies trying to reach consumers via their phones.
In response to the investigation, a Google spokesperson said, “Android provides people with more choice than any other mobile platform in deciding which apps they use and enables thousands of developers and manufacturers to build successful businesses. We welcome the CMA’s efforts to understand the details and differences between platforms before designing new rules.”
The investigation is expected to last no longer than a year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
