Britain's competition watchdog launched an investigation into Apple and Google's mobile platforms, just days after the government forcibly ousted its chairman in a bid to reduce regulatory burdens on businesses.
The Competition and Markets Authority said on Thursday it would examine whether the creators of the iPhone and Android smartphone operating systems should face extra scrutiny over how their mobile platforms operate in a second investigation under the new digital markets regime.
The news comes just two days after the government ousted CMA chairman Marcus Bokkerink from his post amid concerns the regulator was not paying enough attention to growth.
The unexpected move has led many to speculate that antitrust regulators may be more lenient toward Big Tech. The government appointed Doug Gurr, who previously ran Amazon's UK operations, as interim chairman of the CMA.
On Thursday, the CMA said it would investigate how the creators of the iPhone and Android smartphone operating systems compete with each other, whether they favor their own apps and services, and whether developers are treated fairly.
CMA chief executive Sarah Cardell said: “A more competitive mobile ecosystem can foster new innovation and new opportunities across a range of services used by millions of people, whether that’s app stores, browsers or operating systems.”
"Better competition could also boost growth in the UK, with businesses able to offer new and innovative products and services on Apple and Google's platforms," she added.
As part of the UK's Digital Markets, Competition and Consumer Act, which comes into force this month, the CMA can designate a small group of companies as having a "strategic market position" and impose conduct requirements similar to those under the EU Digital Markets Act.
Last week, the CMA opened the first case of its kind, examining Google's dominance in search and advertising.
The CMA is already investigating Google and Apple in separate investigations into mobile web browsers and cloud gaming, with preliminary findings that the two companies have "impeded competition" in the browser space.
"Android's openness helps expand choice, lower prices, and democratize access to smartphones and apps. It's the only example of a successful and viable open source mobile operating system," said Oliver Bethell, senior director of competition at Google.
He added: “We favor a path forward that avoids stifling choice and opportunity for British consumers and businesses, without creating risks to the UK’s growth prospects.”
Apple said its app platform supports hundreds of thousands of UK jobs and said it would "continue to engage constructively with the CMA".
"Apple believes in prosperous and dynamic markets where innovation can thrive," the company said. "We face competition in every segment and jurisdiction in which we operate, and our focus is always on our users' trust."
The CMA's investigation will intensify global scrutiny faced by the two companies for their dominance of the smartphone market.
Apple, which clashed repeatedly with Brussels over the implementation of the Digital Markets Act last year, made changes to its platform after the European Commission accused the iPhone maker of failing to comply with its "online gatekeeper" rules.
If designated, the UK's SMS status will last five years and companies that breach the conduct rules could be fined up to 10% of global turnover.
The CMA said it would accept comments until February 12 and complete its investigation by October 22.