London’s Court of Appeal ruled on Thursday that Britain’s antitrust regulator can investigate Apple’s mobile browser and cloud gaming service, overturning a lower court ruling that the body said could undermine its authority to conduct investigations.
The Competition and Markets Authority (CMA) last year opened a comprehensive investigation into the dominance of Alphabet Inc’s Apple and Google. in mobile browsers.
Apple argued that the CMA had “no authority” to launch such an investigation because it did so too late and that the investigation should have been opened in June, at the same time that the CMA published a report on the mobile ecosystem, which concluded that Apple and Google had an “effective duopoly.”
The Competition Appeal Tribunal (CAT) ruled in favor of Apple in March, but the Court of Appeal on Thursday upheld the CMA’s appeal.
Judge Nicholas Green said in his written decision that the CAT had “lost sight” of the CMA’s role in “promoting competition and protecting consumers”.
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He also said there would be “serious consequences” for the CMA if the CAT’s interpretation of the competition regulator’s powers is correct.
“This means the CMA has no jurisdiction, even years later, to investigate concerns about the conduct of companies like Apple or Google, even if those concerns are objectively justified,” Green said.
Sarah Cardell, chief executive of the CMA, welcomed the decision, which she said “gives the CMA the support it needs to protect consumers and promote competition in the UK”.
Cardell stated that the CMA was willing to reopen the investigation “once the legal process is complete.”
Apple, which did not immediately respond to a request for comment, reserved the right to seek permission to appeal the decision.
The CMA said its investigation was on hold pending an application for permission to appeal to the Supreme Court.
With information from Reuters.
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