Key Points
- The CMA will launch two tech-focused investigations this month under its new powers.
- Apple and Google’s dominance in mobile ecosystems may face scrutiny.
- Investigations will ensure fair competition and consumer choice in digital markets. Each investigation will conclude within nine months.
- The CMA seeks to balance tech sector growth with regulatory oversight.
The UK’s Competition and Markets Authority (CMA) announced plans to launch two investigations this month under its new regulatory framework for major tech companies. These powers aim to promote investment, innovation, and competition within the digital economy.
To initiate investigations, firms must first be designated with “Strategic Market Status” (SMS) in specific digital activities. This designation applies only to the largest and most influential tech companies, setting a high threshold for qualification.
In November, the CMA raised concerns about Apple potentially stifling innovation in smartphone browsers and expressed interest in probing Apple and Google’s dominance in mobile ecosystems. With the new powers now in effect, the regulator plans to begin two investigations in digital activities and expects to announce a third investigation in about six months. Each inquiry will be completed within a statutory period of nine months.
The CMA’s objectives include ensuring that large tech players do not favor their own services to the detriment of smaller competitors, enabling consumers to switch providers without losing data, and fostering competition to drive growth. These measures align with Prime Minister Keir Starmer’s October directive to prioritize economic growth for the CMA.
Since Brexit, the CMA has become more prominent in regulating mergers and competition, positioning itself as a key player overseeing the tech sector. The new regime aims to balance making Britain an attractive technology hub, ensuring consumers benefit from competitive pricing and choices.
