In a significant turn of events, Apple has lost its bid to block a full-scale antitrust investigation into its dominance in the UK’s mobile browser market. The Court of Appeal in London ruled on Thursday that the Competition and Markets Authority (CMA) acted lawfully when it launched the probe into the iPhone maker’s practices. (via. Bloomberg)
This decision marks a major setback for Apple, which had previously argued that the CMA’s investigation that it first launched in November 2022 was procedurally flawed and should be halted. The Court of Appeal, however, disagreed, stating that the CMA has the authority to conduct such investigations and that Apple’s arguments lacked merit.
The CMA’s investigation into Apple’s mobile browser dominance stems from concerns that the company may be abusing its market power to stifle competition. Specifically, the regulator is examining Apple’s practice of requiring all third-party web browsers on iPhones to use its WebKit rendering engine. This, according to the CMA, could be hindering the development of rival browsers and limiting consumer choice.
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The CMA is also investigating Apple’s cloud gaming practices, specifically its role in preventing cloud gaming services from being offered through its App Store. The regulator is concerned that Apple’s restrictions could be limiting consumer choice and stifling innovation in the cloud gaming market.
The renewed investigation comes as Apple faces increasing scrutiny over its mobile app ecosystem. In recent months, the company has been criticized for its 30% commission on all in-app purchases, which some developers argue is excessive and stifles innovation.
Apple has defended its practices, arguing that it provides a valuable platform for developers and that its fees are necessary to maintain its high-quality app store. However, the CMA’s investigation could lead to significant changes in Apple’s App Store policies if it finds that the company is engaging in anticompetitive behavior.
The CMA’s investigation is expected to be lengthy and complex. However, the Court of Appeal’s ruling is a clear victory for the regulator and could have far-reaching implications for Apple’s business in the UK.
The CMA’s investigation is important because it could lead to changes in the way that Apple operates its mobile browser business. The CMA has a “standalone power” to make a market investigation reference, even though it previously decided not to do so during a market study.
