The U.K.’s competition regulator wants to investigate market power it says
Apple Inc.
AAPL -2.77%
and
Alphabet Inc.’s
GOOG -2.65%
Google exert over some mobile-device software, ramping up global antitrust scrutiny of the largest U.S. technology companies.
The Competition and Markets Authority said Friday that it intends to initiate so-called market investigations into how the companies control web browsers for mobile devices, as well as complaints that Apple restricts cloud gaming on its devices. Under U.K. rules, market investigations can lead to binding orders to change practices, but no fines.
Separately, the CMA announced a traditional competition investigation—which could lead to fines—into conditions Google places on in-app payments in its mobile store. That probe is similar to one the regulator opened into Apple’s App Store last year.
The new investigations stem from a report by the CMA published Friday that said Apple and Google have an effective mobile-device duopoly that enables them to exercise what the regulator called a stranglehold over mobile ecosystems. Without intervention, the companies are likely to strengthen their positions in the sector, further restricting competition, the report said.
“When it comes to how people use mobile phones, Apple and Google hold all the cards,” said
Andrea Coscelli,
the CMA’s chief executive, adding that the companies’ “strong grip on mobile ecosystems allows them to shut out competitors.”
Both companies said their practices promote competition and choice.
Apple said that it disagrees with some of the CMA’s conclusions and that it aims to work with the British regulator “to explain how our approach promotes competition and choice, while ensuring consumers’ privacy and security are always protected.” Google said that it has “reacted quickly to CMA feedback in the past” and would continue to engage with the regulator.
The latest investigations add to a mounting tally aimed at big tech companies. The U.S. Department of Justice, the Federal Trade Commission and some American states are investigating or have filed lawsuits against several large technology companies including Google and
Meta Platforms Inc.
The European Union’s top antitrust regulator has opened cases into Apple, Google, Facebook and
Amazon
—and the bloc has agreed on a new digital-competition law aimed at forcing those companies to proactively change their practices or be hit with heavy fines.
The companies have defended their practices, saying they operate in highly competitive markets, but some have also settled some cases without a fight. Google last year settled an antitrust case in France over its leading role in the digital advertising sector and another in the U.K. over its plan for its Chrome browser to stop supporting a user-tracking technology called third-party cookies.
—Kyle Morris contributed to this article.
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