LONDON (Reuters) – The Competition and Markets Authority (CMA) in Britain has announced that it will kick off two separate investigations this month employing its newfound authority over the largest tech companies. These inquiries are aimed at fostering investment, innovation, and growth within the tech sector.
The CMA will classify companies as having “Strategic Market Status” (SMS) concerning a specific digital activity before delving into an investigation. Attaining SMS status is not an easy feat, reserved only for the most considerable and influential tech entities.
In November, the CMA expressed concerns that Apple might be hindering innovation in smartphone browsers. It also indicated that it could probe into the mobile ecosystems duopoly upheld by Apple and Google following the enactment of its enhanced powers, which became effective this month.
The authority disclosed on Tuesday its plans to initiate investigations into two digital activity areas this month, with further details to be disclosed at a later time. Additionally, after approximately six months, they intend to commence a third inquiry. Each investigation must be concluded within a statutory timeframe of nine months, as specified by the CMA.
Among the factors under consideration by the regulatory body are measures to prevent major players from excluding smaller rivals by favoring their own services, facilitating seamless transitions between digital service providers without data loss, and driving growth by promoting more robust competition.
With the expanded responsibilities post-Brexit, the CMA has had an increased role in overseeing mergers. In October, Prime Minister Keir Starmer advised the CMA to prioritize growth more substantially. The CMA highlighted that the new regulatory framework is designed to enhance the appeal of Britain to tech companies while ensuring consumer choice and competitive pricing.
(Reporting by Paul Sandle, editing by Sarah Young)
