The UK’s Competition and Markets Authority (CMA) is signaling new regulations for mobile platforms operated by Apple and Google. This development follows a CMA study that concluded the policies of both tech giants were hindering innovation within the UK’s digital market.
Oliver Bethell, Google’s Head of Competition, expressed disappointment with the CMA’s proclamation, labeling it “unwarranted.” he highlighted Android‘s estimated savings for developers, stating, “We estimate that Android has saved developers over 1 million days they would otherwise spend adapting to different operating models for each smartphone – the equivalent of [300 million pounds (about $408 million)] in reduced costs.” Bethell emphasized the need for any new regulations to be “evidence-based, proportionate and does not become a roadblock to growth in the U.K.”
An Apple spokesperson voiced concerns that the proposed rules could compromise user privacy and security, impede innovation, and potentially force the company to offer its technology without charge to international competitors.
The CMA’s move is enabled by a new “digital markets competition regime” that came into effect on January 1st. This regime empowers the CMA to designate companies with “strategic market status” in specific digital activities and to implement conduct requirements or pro-competition measures. The CMA announced in January its intention to launch new investigations into Big Tech companies under this new framework.