UK Probe into Apple's Cloud Gaming Restrictions Put on Hold

The Competition and Markets Authority in the UK has temporarily halted its investigation into Apple's cloud gaming restrictions after a challenge from Apple and a dispute with the Competition Appeal Tribunal. The regulator had initiated a Phase 2 investigation in November to examine whether Apple and Google's dominance over mobile web browsers stifles competition and innovation, including Apple's limitations on cloud gaming services through its App Store. This investigation was prompted by the CMA's Mobile Ecosystem Market Study, which recommended such an inquiry earlier in the year. However, Apple and Google contested the investigation before the Competition Appeal Tribunal, which ruled that the CMA had missed the required deadlines to commence the investigation. The CAT's judgment on March 31, 2023, deemed the CMA's decision to launch the investigation as exceeding its authority. After being denied permission to appeal on May 3, the CMA applied to the Court of Appeal for permission to appeal the CAT's ruling and is awaiting a decision. In the meantime, the CMA has stated that it will not proceed with the market investigation. The CMA has previously expressed concerns about competition in the cloud gaming sector, notably in its decision to block Microsoft's proposed acquisition of Activision Blizzard, citing concerns that the acquisition could grant Microsoft dominance in the cloud gaming market.