Apple and Google face enforced changes over UK mobile phone dominance
Google and Apple face enforced changes to how they operate their mobile phone platforms, after the UK’s competition watchdog ruled the companies require tougher regulatory oversight.The Competition and Markets Authority has conferred “strategic market status” (SMS) on the tech firms after investigating their mobile operating systems, app stores and browsers.It means Apple and Google will be subjected to tailormade guidelines to regulate their behaviour in the mobile market.The CMA said the two companies have “substantial, entrenched” market power, with UK mobile phone owners using either Google or Apple’s platforms and unlikely to switch between them.The regulator flagged the importance of their platforms to the UK economy and said they could be a bottleneck for businesses.
Will Hayter, the executive director for digital markets at the CMA, said: “The app economy generates 1,5% of the UK’s GDP and supports about 400,000 jobs, which is why it’s crucial these markets work well for business so they can invest, innovate and drive the growth this country needs,“Apple and Google’s mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms’ rules may be limiting innovation and competition,”Changes under consideration by the CMA include allowing users to be “steered” out of app stores to make purchases elsewhere, like on a company’s own website,App developers have long taken issue with Apple and Google taking a cut from purchases made via apps.
The CMA also wants both companies to ensure users have a “genuine choice” over the services they use on their devices, like digital wallets on Apple,The move by the regulator has come under a new regulatory regime brought in by the Digital Markets, Competition and Consumers Act 2024 and follows the designation of Google’s search business as requiring SMS oversight,Google described the CMA decision as “disappointing, disproportionate and unwarranted”,Oliver Bethell, a senior competition director at the company, said: “The UK’s new digital markets regime was introduced with the promise of being pro-growth and pro-innovation, with the CMA emphasising that its work would be highly targeted and proportionate,In this context, we simply do not see the rationale for today’s designation decision.
”Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionApple, a strong critic of the EU’s tech regulatory regime, which has targeted the iPhone maker and Google, also criticised the decision.“Apple faces fierce competition in every market where we operate, and we work tirelessly to create the best products, services and user experience,” said the company.“The UK’s adoption of EU-style rules would undermine that, leaving users with weaker privacy and security, delayed access to new features, and a fragmented, less seamless experience.”
Foxtons shares drop sharply after it warns of ‘subdued’ pre-budget sales
The estate agency Foxtons has warned of weak sales for the rest of the year as economic uncertainty and potential property tax changes in next month’s budget deter buyers, sending its shares sharply lower.The London-focused company, known for its green-and-yellow Mini cars, said buyers had been holding off ahead of the budget on 26 November, which is a month later than usual.Slower-than-expected interest rate cuts from the Bank of England are also having an impact by affecting the cost of mortgages, it said. As a result, “sales are likely to remain subdued for the rest of the year”, with a risk that revenues in the fourth quarter could fall below management’s expectations.Guy Gittins, the chief executive who started his career at Foxtons in 2002 and returned to lead the company three years ago, said: “Macroeconomic uncertainty and speculation surrounding the delayed autumn budget has resulted in a subdued sales market as some buyers adopt a ‘wait and see’ attitude to purchases
Aerospace groups link up to create European rival to Musk’s SpaceX
Airbus, Leonardo and Thales have struck a deal to combine their space businesses to create a single European technology company that could rival Elon Musk’s SpaceX.The deal is expected to create a company with annual revenue of about €6.5bn (£5.6bn). The French aerospace company Airbus will own 35% of the new business, with Leonardo and Thales each owning stakes of 32
Lloyds profits plunge 36% as it feels impact of UK car finance scandal
Lloyds Banking Group profits have been sent plunging by more than a third by the car loans commission scandal, as the lender steels itself for a surge in compensation payouts to drivers.The high street bank took the 36% hit in the third quarter after putting aside a further £800m to cover the prospective costs of a redress scheme proposed by the Financial Conduct Authority (FCA).The additional charge, announced last week, brings Lloyds’ total compensation pot to £1.95bn.Lloyds is the UK’s biggest car lender through its Black Horse division and is expected to foot the largest bill among its peers
Thames Water ranked worst supplier in England as firms’ ratings hit record low
England’s water company ratings have fallen to the lowest level on record after sewage pollution last year hit a new peak, with eight of nine water companies rated as poor and needing improvement by the Environment Agency.The cumulative score of only 19 stars out of a possible 36 is the lowest since the regulator began auditing the companies using the star rating system in 2011.Only one company, Severn Trent, achieved full marks. It did so despite having been responsible for 62,085 sewage spills, averaging seven hours each, in 2024.Struggling Thames Water was the only company to be awarded one star for its performance
Groceries via delivery apps like Uber Eats, DoorDash and Milkrun can be up to 39% more expensive
Convenience can come at a steep price, Choice has found, with Australian consumers paying up to 39% more for groceries ordered through rapid delivery apps.Choice compared in-store prices of 13 common grocery items available at Coles, Woolworths and Aldi with their equivalents on third-party apps Uber Eats, DoorDash and Woolworths-owned Milkrun.They found that items including pasta, milk and fresh vegetables cost on average 11% more on third-party apps and delivery charges of between $5 and $11 significantly drove up bills.Seven out of 13 items at Aldi were priced higher on DoorDash than in store, while Milkrun charged more for 11 out of 13 items from Woolworths.“Not all items are increased in price,” said the editorial director at Choice, Mark Serrels, but “the majority of them are”
Barclays can afford Tricolor loss but risks remain in the private credit market
“I’m not an entomologist,” said CS Venkatakrishnan, the Barclays chief executive, dodging the question everybody is asking: how many cockroaches are about to crawl out of the woodwork in the private credit market?The good news – sort of – for Barclays is that it had only one insect to point to. A £110m loss from lending to Tricolor, the US sub-prime auto lender that has failed amid allegations of fraud, doesn’t look good but Venkatakrishnan could simultaneously trumpet that Barclays avoided that other rotten private credit beast First Brands. Barclays was asked to lend to the stricken autoparts supplier, but didn’t. JP Morgan, taking its own $170m (£127m) hit on Tricolor, said the same last week.One could regard these developments as mildly reassuring after a week in which both the International Monetary Fund and the Bank of England have warned about risks that may be emerging in the world of private credit, AKA the shadow banking sector
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