Apple and Google expected to face new app store rules

The United Kingdom's competition regulator is poised to implement new rules affecting Apple and Google's mobile platforms in a bid to enhance market competition.

In a draft ruling issued on Wednesday, the UK's Competition and Markets Authority, or CMA, moved to classify both technology giants as having "strategic market status" in the mobile sector, leveraging its newly granted digital market oversight powers.

The designation reflects the CMA's assessment that both companies hold "substantial and entrenched" control over key mobile technologies, including their respective app marketplaces, web browsers, browser engines, and operating systems.

The new rules could reduce fees that Apple and Google levy on digital transactions in their mobile app stores, while also blocking them from designing their systems to prioritize their own apps and services, reported the Financial Times newspaper.

Sarah Cardell, chief executive of the CMA, said the watchdog's investigation had "identified opportunities for more innovation and choice".

"The targeted and proportionate actions we have set out today would enable UK app developers to remain at the forefront of global innovation while ensuring UK consumers receive a world-class experience," Cardell said. "Time is of the essence: as competition agencies and courts globally take action in these markets, it's essential the UK doesn't fall behind."

If the decision is confirmed later this year, the designation would allow the CMA to impose new rules, known as Conduct Requirements, on Apple and Google.

A spokesperson for Apple said: "We're concerned the rules the UK is now considering would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors. We will continue to engage with the regulator to make sure they fully understand these risks."

Oliver Bethell, director of competition at Google, said the CMA decision was "disappointing and unwarranted".

"Android is open source and Chrome is built on our browser engine Blink, which is also open source. Together with Play, these offerings enable great choice, security, and innovation for users," he said. "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 ($406 million) in reduced costs."

Consultations on the proposed designations for Apple and Google will be accepted through Aug 20, with the CMA required to reach its final verdict by Oct 22, reported Politico.

The probe into Apple and Google marks the second investigation the CMA has launched since gaining new digital market oversight authority in January.

jonathan@mail.chinadailyuk.com