UK Watchdog Shuts Down Probes into Apple and Google App Stores 

3D printed logos of Apple and Google are pictured on a keyboard in front of binary code in this illustration taken September 24, 2021. (Reuters)
3D printed logos of Apple and Google are pictured on a keyboard in front of binary code in this illustration taken September 24, 2021. (Reuters)
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UK Watchdog Shuts Down Probes into Apple and Google App Stores 

3D printed logos of Apple and Google are pictured on a keyboard in front of binary code in this illustration taken September 24, 2021. (Reuters)
3D printed logos of Apple and Google are pictured on a keyboard in front of binary code in this illustration taken September 24, 2021. (Reuters)

Britain's competition watchdog has closed its existing investigations into Apple and Google's respective app stores, awaiting new laws governing digital markets.

The tech giants have faced scrutiny around the world over the dominance of their respective App Store and Google Play store platforms, which critics say impose unfair charges on app developers and limit competition.

In 2022, the Competition and Markets Authority (CMA) published a market study of mobile ecosystems in Britain, which found Apple and Google held an effective monopoly over the distribution of apps in Britain.

The body subsequently launched parallel investigations into both companies for alleged anticompetitive behavior.

But in a statement published on Wednesday, the CMA said it had dropped both probes, pending the roll-out of the Digital Markets, Competition and Consumers Act (DMCCA), which is expected to come into force later this year.

"Once the new pro-competition digital markets regime comes into force, we’ll be able to consider applying those new powers to concerns we have already identified through our existing work," said Will Hayter, Executive Director for Digital Markets at the CMA.

A Google spokesperson said its Android operating system had always allowed flexibility and choice not found on other platforms, including multiple app stores.

"We have engaged with the CMA over the course of many months during their investigation. As part of this, we made a number of significant commitments to further broaden the billing options available to developers through Google Play," they said.

Apple did not immediately respond to a request for comment.



US Supreme Court Tosses Case Involving Securities Fraud Suit against Facebook

A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
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US Supreme Court Tosses Case Involving Securities Fraud Suit against Facebook

A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)

The US Supreme Court sidestepped on Friday a decision on whether to allow shareholders to proceed with a securities fraud lawsuit accusing Meta's Facebook of misleading investors about the misuse of the social media platform's user data.
The justices, who heard arguments in the case on Nov. 6, dismissed Facebook's appeal of a lower court's ruling that had allowed a 2018 class action led by Amalgamated Bank to proceed. The Supreme Court opted not resolve the underlying legal dispute, determining that the case should not have been taken up. Its action leaves the lower court's decision in place, Reuters reported. 
The court's dismissal came in a one-line order that provided no explanation. The Facebook dispute was one of two cases to come before the Supreme Court this month involving the right of private litigants to hold companies to account for alleged securities fraud. The other one, involving the artificial intelligence chipmaker Nvidia, was argued on Nov. 13. The Supreme Court has not ruled yet in the Nvidia case.
The plaintiffs in the Facebook case claimed the company unlawfully withheld information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users. They accused Facebook of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. Facebook's stock fell following 2018 media reports that Cambridge Analytica had used improperly harvested Facebook user data in connection with Donald Trump's successful US presidential campaign in 2016. The investors have sought unspecified monetary damages in part to recoup the lost value of the Facebook stock they held.
At issue was whether Facebook broke the law when it failed to detail the prior data breach in subsequent business-risk disclosures, and instead portrayed the risk of such incidents as purely hypothetical.
Facebook argued that it was not required to reveal that its warned-of risk had already materialized because "a reasonable investor" would understand risk disclosures to be forward-looking statements. President Joe Biden's administration supported the shareholders in the case.
US District Judge Edward Davila dismissed the lawsuit but the San Francisco-based 9th US Circuit Court of Appeals revived it.
The Cambridge Analytica data breach prompted US government investigations into Facebook's privacy practices, various lawsuits and a US congressional hearing. The US Securities and Exchange Commission in 2019 brought an enforcement action against Facebook over the matter, which the company settled for $100 million. Facebook paid a separate $5 billion penalty to the US Federal Trade Commission over the issue.
The Supreme Court in prior rulings has limited the authority of the Securities and Exchange Commission, the federal agency that polices securities fraud.