UK to open anti-trust probes under new digital market powers
What's the story
The United Kingdom's anti-trust body, the Competition and Markets Authority (CMA), is planning to launch two investigations against major tech companies this month.
The probes are aimed at stimulating investment, innovation, and growth by ensuring fair competition in the digital sector.
The move comes as part of CMA's newly acquired powers under the Digital Markets, Competition and Consumers Act that came into effect on January 1.
Regulatory reach
CMA's new powers target tech giants
The CMA's new powers are tailored to keep the biggest tech firms in check.
Before an investigation can begin, companies need to be classified as having "Strategic Market Status" (SMS) in the context of a particular digital activity.
The status is only reserved for the most powerful tech companies, which shows the high bar set by the CMA for its investigations.
Market scrutiny
CMA to scrutinize Apple and Google's market dominance
Back in November, the CMA raised concerns that Apple could be stifling innovation in smartphone browsers. It also hinted at a possible investigation into the duopoly of Apple and Google in mobile ecosystems.
Now, the regulator has confirmed that it will launch probes into two areas of digital activity this month, with details to follow soon. A third probe will follow after about six months.
Timeline
Investigations to conclude within 9 months
Each investigation by the CMA is expected to be completed within a statutory time limit of nine months.
The regulator's approach will be to prevent big players from sidelining smaller competitors by favoring their own services.
It also aims to make user transition between digital providers easier (without data loss) and promote growth through more effective competition.
Regulatory balance
CMA aims to balance growth and competition
Since the UK's exit from the European Union, the CMA has assumed a more prominent role in merger control.
Prime Minister Keir Starmer had urged the regulator in October to prioritize growth.
The new regime is designed to make Britain more attractive to tech companies while maintaining consumer choice and competitive pricing.