Insights Competition Appeal Tribunal (CAT) rules that Competition and Markets Authority’s decision to make a market investigation reference into supply of mobile browsers and distribution of mobile cloud gaming services through app stores was ultra vires

Apple Inc and others applied for a review under s 179 of the Enterprise Act 2002 of the CMA’s decision to make a market investigation reference under s 131 of the 2002 Act into the supply of mobile browsers and mobile browser engines and the distribution of cloud gaming services through app stores on mobile devices in the UK.

Apple contended that the CMA’s decision was ultra vires because it was outside the statutory time limits set out in ss 131B(4), 131B(5) and 131B(6) of the 2002 Act. The Tribunal unanimously agreed with Apple. It therefore allowed Apple’s challenge and quashed the CMA’s decision.

The CMA has said that it is “disappointed” with the judgment. It said that it made the market investigation reference to “make sure that UK consumers get a better choice of mobile internet services and that UK developers can invest in innovative new apps”. It also highlighted that the CMA’s concerns and the reasons why it launched the market investigation were not challenged by Apple.

The CMA said that the judgment “has found there are material constraints on the CMA’s general ability to refer markets for in-depth investigations”, which “risks substantially undermining the CMA’s ability to efficiently and effectively investigate and intervene in markets where competition is not working well”. To read the response, click here.