Google hit with UK probe into suspected competition breaches

Bloomberg

The UK’s antitrust watchdog launched an investigation into the Google Play app store over suspected anticompetitive conduct, alongside a sweeping study taking aim at Alphabet Inc and Apple Inc’s “strong grip” over mobile technologies.
Marking the latest broadside against Silicon Valley from an increasingly interventionist UK regulator, the Competition and Markets Authority (CMA) will probe suspected breaches of competition law in Google’s rules over in-app payments in its mobile store in the UK, it said.
It set out various other possible interventions to tackle the apparent dominance of the two Big Tech giants in a flurry of statements. It announced a deeper planned study into Apple and Google’s market power in mobile browsers and Apple’s in cloud gaming.
“When it comes to how people use mobile phones, Apple and Google hold all the cards,” CMA Chief Executive Officer Andrea Coscelli said in a statement. “As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice.”
He said the announcements add to eight cases currently open against major tech companies. Google is currently subject of at least two other British investigations mainly focused on its ad tech.
The watchdog published a 356-page market study into mobile ecosystems which took a year to compile, researching devices, operating systems and apps, after it previously voiced fears Google and Apple’s dominance could stifle competition.
“We respectfully disagree with a number of conclusions reached in the report, which discount our investments in innovation, privacy and user performance,” Apple said in a statement.
Android phones offer more choice than rival platforms and Google Play has launched businesses and helped create jobs, a Google spokesperson said. “We regularly review how we can best support developers and have reacted quickly to CMA feedback in the past. We will review the report and continue to engage with the CMA.”
The CMA is waiting for the government to pass legislation which gives its new Digital Markets Unit the power to enforce more types of intervention.