UK Tech Giants Face Digital Markets Act-Style Competition Scrutiny
The Competition and Markets Authority has begun deploying the new powers granted by the Digital Markets, Competition and Consumers Act, launching formal investigations into the conduct of the largest technology platforms in areas including mobile browser competition, app store practices and the terms on which digital advertising is sold. The first use of the new framework marks a significant moment in the UK’s approach to regulating technology markets, moving from reactive competition enforcement towards a proactive regime designed to prevent the entrenchment of dominant positions before they cause lasting harm to competition and consumers.
Apple’s control of the Safari browser on iOS devices and its App Store policies, which restrict the ability of alternative app stores to compete for distribution of software on Apple devices, are among the first areas of focus. The CMA had raised concerns about these practices under the existing competition framework and the new Act’s designation powers — which allow the CMA to classify certain large tech companies as having Strategic Market Status, triggering specific conduct requirements — give the authority stronger tools to require meaningful access and interoperability than were previously available.
Google’s dominance in search advertising and its position in the digital advertising stack are also under review, building on an investigation that had been proceeding under the old framework and which the new powers allow to be accelerated. The digital advertising market, where Google controls significant proportions of the buying, selling and technical infrastructure for display and search advertising, has been a persistent concern for publishers and advertisers who argue the system is structured to extract maximum value for the platform at the expense of content creators and advertising buyers.
Technology companies subjected to designation have challenged aspects of the new framework in legal proceedings, arguing that certain provisions exceeded the appropriate bounds of competition regulation and created regulatory uncertainty that would deter investment in the UK market.
