In late 2022, the British competition watchdog launched an in-depth phase 2 investigation into the market power of Apple and Google in mobile browsers and browser engines as well as the distribution of cloud gaming services through app stores on mobile devices
UK Competition Appeal Tribunal accepts Apple’s appeal against the UK CMA’s decision to launch a deeper probe into mobile browsers. (Credit: Olya Adamovich from Pixabay)
The UK Competition Appeal Tribunal has unanimously accepted Apple’s appeal against the UK Competition and Markets Authority’s (CMA) decision to launch a market investigation into the supply of mobile browsers and cloud gaming services in the UK.
According to the tribunal, the CMA has not complied with the deadlines required in the process and therefore favoured the tech major.
In a statement, the tribunal said: “The CMA failed to comply with these deadlines.
“The deadline for a notice of a proposed market investigation reference was 15 December 2021, whereas the CMA published its proposal on 10 June 2022, and the deadline for the period of consultation to begin was 15 December 2021, whereas the CMA commenced its consultation on 10 June 2022.
“This means the Decision lacks the statutory pre-requisites for a valid decision, was ultra vires, and must be quashed.”
In November 2022, the CMA launched an in-depth phase 2 investigation into the market power of Apple and Google in mobile browsers and browser engines as well as the distribution of cloud gaming services through app stores on mobile devices.
According to the British competition watchdog, it got widespread support for a consultation published in June 2022 for starting a market investigation into cloud gaming and browsers.
The CMA commenced a market study into the mobile ecosystems of Apple and Google to understand if the companies’ market power is impacting users and other businesses in June 2021.
The regulator found that 97% of all mobile web browsing in the UK in 2021 was carried out on browsers powered by the browser engines of either Google or Apple.
In February 2023, the CMA appointed Kantar Public to carry out a quantitative survey of UK consumers who own a smartphone.
A UK CMA spokesperson said: “We are disappointed with today’s judgment. We made this market investigation reference to make sure that UK consumers get a better choice of mobile internet services and that UK developers can invest in innovative new apps.
“Our concerns, and the reasons why we launched our market investigation, were not challenged by Apple. Today’s judgment has found there are material constraints on the CMA’s general ability to refer markets for in-depth investigations.
“This risks substantially undermining the CMA’s ability to efficiently and effectively investigate and intervene in markets where competition is not working well. Given the importance of today’s judgment, we will be considering our options including seeking permission to appeal.”