UK Plans to Probe Apple, Google’s Mobile Browser Dominance

08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)
08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)
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UK Plans to Probe Apple, Google’s Mobile Browser Dominance

08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)
08 May 2018, US, Mountain View: Google's logo on the facade of parent company Alphabet's headquarters. (dpa)

Britain's competition watchdog said it was planning to investigate the market dominance of Apple Inc and Google's mobile browsers, as well as the iPhone maker's restrictions on cloud gaming through its app store.

The Competition and Markets Authority (CMA) said on Friday it was also taking enforcement action against Alphabet Inc's Google over its app store payment practices.

It said the two tech giants had an "effective duopoly" on mobile ecosystems that gave them a stranglehold on operating systems, app stores and web browsers on mobile devices.

"When it comes to how people use mobile phones, Apple and Google hold all the cards," CMA Chief Executive Andrea Coscelli said following the publication of a report on mobile ecosystems.

"As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice."

It said 97% of all mobile web browsing in Britain last year was powered by either Apple's or Google's browser engine, and in addition Apple banned alternatives to its own browser on iPhone.

The CMA said it was concerned this severely limited the potential for rival browsers to differentiate themselves from Apple's Safari, for example on features such as speed and functionality.

Apple said in a statement it had "created a safe and trusted experience users love and a great business opportunity for developers" through its ecosystem.

"We respectfully disagree with a number of conclusions reached in the report, which discount our investments in innovation, privacy and user performance - all of which contribute to why users love iPhone and iPad and create a level playing field for small developers to compete on a trusted platform," a spokesperson said.

"We will continue to engage constructively with the CMA to explain how our approach promotes competition and choice, while ensuring consumers’ privacy and security are always protected."

Google said smartphones using its Android operating system offered people and businesses more choice than any other mobile platform, and its Google Play app store has been the launchpad for millions of apps.

"We regularly review how we can best support developers and have reacted quickly to CMA feedback in the past," a Google spokesperson said.

"We will review the report and continue to engage with the CMA."

The regulator said it was also worried about Apple blocking the emergence of cloud gaming services, which allow high-quality games to be streamed rather than individually downloaded.

"By preventing this sector from growing, Apple risks causing mobile users to miss out on the full benefits of cloud gaming," it said.

The CMA said its proposed investigation would further assess its concerns and could result in legally binding orders requiring changes to be made to Apple's and Google's practices.

The consultation on the proposed the market investigation reference will close on 22 July.



TikTok Calls Report of Possible Sale to Musk's X 'Pure Fiction'

The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)
The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)
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TikTok Calls Report of Possible Sale to Musk's X 'Pure Fiction'

The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)
The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)

TikTok on Tuesday labeled as "pure fiction" a report that China is exploring a potential sale of the video-sharing platform's US operations to billionaire Elon Musk as the firm faces an American law requiring imminent Chinese divestment.

Citing anonymous people familiar with the matter, Bloomberg News had earlier reported that Chinese officials were considering selling the company's US operations to Musk's social media platform X.

The report outlined one scenario being discussed in Beijing where X would purchase TikTok from Chinese owner ByteDance and combine it with the platform formerly known as Twitter.

"We cannot be expected to comment on pure fiction," a TikTok spokesperson told AFP.

The report estimated the value of TikTok's US operations at between $40 billion and $50 billion.

Although Musk is currently ranked as the world's wealthiest person, Bloomberg said it was not clear how Musk could execute the transaction, or if he would need to sell other assets.

The US Congress passed a law last year that requires ByteDance to either sell its wildly popular platform or shut it down. It goes into effect on Sunday -- a day before President-elect Donald Trump takes office.

The US government alleges TikTok allows Beijing to collect data and spy on users and is a conduit to spread propaganda. China and ByteDance strongly deny the claims.

TikTok has challenged the law, taking an appeal all the way to the US Supreme Court, which heard oral arguments on Friday.

At the hearing, a majority of the conservative and liberal justices on the nine-member bench appeared skeptical of arguments by a lawyer for TikTok that forcing a sale was a violation of First Amendment free speech rights.

Bloomberg characterized Beijing's consideration of a possible Musk transaction as "still preliminary," noting that Chinese officials have yet to reach a consensus on how to proceed.

Musk is a close ally of Trump and is expected to play an influential role in Washington in the coming four years.

He also runs electric car company Tesla, which has a major factory in China and counts the country as one of the automaker's biggest markets.

Trump has repeatedly threatened to enact new tariffs on Chinese goods, which would expand a trade war begun in his first term and which was largely upheld, and in some cases supplemented, by outgoing President Joe Biden.