Apple, Google face U.K. probe into mobile business practices
July 23 (UPI) -- Britain's Competition and Markets Authority on Wednesday opened an investigation into Apple and Google over their mobile operating systems.
The competition regulators are pushing Google and Apple to change their app stores to allow for more fairness for competitors. They also may give the two companies Strategic Market Status, which designates them as companies with "substantial and entrenched market power" and a "position of strategic significance" on digital activity in the U.K.
The authority can force SMS companies to change their practices to allow more competition.
Both companies balked at the investigation, saying the changes would affect user security and consumers.
The segments the CMA is focusing on are mobile operating systems, native app distribution and mobile browsers and browser engines.
The investigation, which began in January, looked at whether there are barriers that may hinder others from offering products and services on their mobile platforms.
Another part looked at whether the two companies were using their positions as operating systems to favor their own apps and services.
The third part of the probe is whether they require developers to agree to unfair terms and conditions to distribute their apps on the app stores.
It also looked at the 30% commission charged by the companies on in-app purchases and restrictions on developers telling customers about cheaper ways to pay or subscribe.
Developers expressed concern that Apple and Google could have access to commercially sensitive data of their competitors, the CMA said.
Google's Android operating system has just over 61% market share in the U.K., while Apple's iOS has just over 38%, according to Kantar data, CNBC reported. Google runs the Google Play Store and Chrome browser, and Apple has its App Store and Safari browser.
The regulator is looking at how Apple and Google can make it easier to avoid paying the app stores' fees. It's also searching for ways to simplify transferring data between iOS and Android, making switching easier.
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