Apple recently challenged the authority of Britain's competition watchdog to investigate its mobile browsers, claiming that it lacked the authority to launch an investigation because it appears to have done so too late.
Reuters reports that Apple told a London tribunal on Friday, March 10, that Britain's competition watchdog had "no power" to start a probe.
Apple Contends UK Watchdog Investigation
The Competition and Markets Authority (CMA) launched an investigation into Apple's cloud gaming and mobile browsers in November, citing concerns about Apple and Google's restrictions.
The CMA has been investigating Apple and Google's "effective duopoly" that enables the companies to "exercise a stranglehold over these markets" for nearly a year. This was found in research made by the watchdog.
MacRumors tells us that as part of the market investigation, which is supposed to be over in 18 months, the CMA can request Apple for a significant amount of data to conclude and make legally binding changes.
In January, Apple filed an appeal with the Competition Appeal Tribunal in London, claiming that the investigation is invalid because it should have begun in June 2022.
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The CMA claims that the investigation will increase developer opportunities while providing more options to UK consumers. It also mentions that the browser engines of Apple or Google power 97% of all mobile web browsing in the UK.
Apple Legal Team Opposes Probe
Timothy Otty, Apple's attorney, argued that Apple had "suffered serious prejudice" as a consequence of the CMA's decision, having "had to repeatedly divert management time and technical resources away from its business activities."
In addition, he mentioned that the CMA's decision to investigate in November was too late to comply with the law.
James Eadie, a lawyer representing the CMA, reasoned that the watchdog had complied with the legal time limits by noting that it initially decided not to launch an investigation in December 2021.
Additionally, he argued that invalidating the investigation would cause "significant prejudice to the public interest" that would outweigh any burden borne by Apple.
What This Means for Apple
The result of the hearing will have a profound impact on the tech sector, as it will establish whether the CMA has the authority to investigate Apple and Google for their practices in the United Kingdom. If the appeal is successful, it could restrict the CMA's power to look into other tech giants.
The investigation into Apple's mobile browsers is merely one of the regulatory challenges the company faces globally. In the United States, lawmakers are investigating whether Apple and other tech giants have committed anticompetitive practices, while the European Commission is investigating Apple's App Store practices.
According to Reuters, the hearing occurred on the same day that the CMA announced it was extending the deadline for its analysis and review of Apple's app developer terms and conditions until May.
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