The UK antitrust authorities attempted to probe Apple's browser and cloud gaming dominance on iOS, but they were halted before they could advance any further. This was not due to the strength of Apple's argument, but here's why.
Browser Dominance Probe
UK regulators, the Competition and Markets Authority (CMA), said in November 2022 that they will look into whether or not Apple and Google are abusing their position as the two most popular mobile browsers, particularly concerning mobile gaming. More specifically, the CMA wants to look into Apple's decision to limit the availability of cloud-based gaming applications in the App Store.
In its appeal, Apple argued that the CMA lacked jurisdiction since the probe had been initiated too late. In a report by AppleInsider, Company attorney Timothy Otty said that an inquiry into the two internet giants' "effective duopoly" should have been conducted in June 2022, when the CMA released a study on mobile ecosystems.
The Competition Appellate Tribunal (CAT) sided with Apple on Friday, Mar. 31, finding that "it might well be said that the CMA erred in law" by failing to act after receiving the June report Apple requested.
Without a dedicated app for each game, Apple does not approve a cloud streaming app for the App Store. Hence, programmers can make a client app that helps users join their service and discover games, but they cannot bundle the games themselves within that app.
The CMA concluded that developers face higher expenses due to factors such as "suggested underinvestment in its browser technology," therefore, they focus on mobile app development rather than allowing users to play cloud-based games through Safari.
Nevertheless, Apple only places a limit on cloud gaming inside the App Store and not within Safari itself.
Transparency and Accessibility
While Apple won this round, important changes will be implemented in March 2024 due to the Digital Markets Act in the European Union. One of them is the need for platforms like Apple's open up to third-party app stores. After being signed into law in November 2022, the Digital Markets Act will take effect on May 2 of this year.
DuckDuckGo, the Electronic Frontier Foundation, Meta, Microsoft, Mozilla, and Vodaphone are just some of the organizations that backed the CMA's probe.
For example, Microsoft is working on a mobile gaming shop for its Xbox Game Pass service.
Microsoft's goal is to compete with the likes of Apple and Google by offering a gaming shop and making a number of promises that will make its mobile store more accessible than the App Store. These promises include supporting other payment methods and opening the store to all developers, both of which are prohibited by Apple's App Store policies.
Apple claims it is protecting users' personal information and data by not allowing competing app stores on its platforms. In June 2021, Tim Cook spoke at the Viva Tech conference in Europe. One of the topics he covered was the need to keep customers secure.
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