UK antitrust watchdog probing Apple, Google over mobile, cloud gaming
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The UK's antitrust watchdog is consulting on the launch of a market investigation into Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL), probing the tech giants' market power in mobile browsers, and Apple's restrictions on cloud gaming through the App Store.
In a parallel move, the Competition and Markets Authority is also taking enforcement action against Google (GOOG) (GOOGL) over its Play Store payment practices.
The news comes alongside the release of a yearlong report on the companies' mobile ecosystems that found an "effective duopoly" resulting in a "stranglehold over these markets, which include operating systems, app stores and web browsers on mobile devices."
"When it comes to how people use mobile phones, Apple and Google hold all the cards," CMA Chief Executive Andrea Coscelli said. "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."
When it comes to mobile browsers, Apple bans alternatives to its own browser engine on its devices, the CMA says - and mobile devices typically have either Google's Chrome or Apple's Safari pre-installed and set as default at purchase time.
Apple (AAPL) has also blocked the emergence of cloud gaming services on the App Store, it says.
The parallel Google (GOOG) (GOOGL) action covers conditions Google sets for how users can make in-app payments for certain digital products.
The CMA generally must close market investigations within 18 months; it's able to impose its own remedies on businesses as well as make recommendations to the government on legislation.
Alongside a sharply lower market, Apple (AAPL) is 3.5% lower Friday; Alphabet is lower as well: (GOOG) -3.2%; (GOOGL) -3.6%.