According to the Australian Government, Google (NASDAQ: GOOGL) and Apple's (NASDAQ: APPL) app store practices and their usage of default apps may unfairly stifle competition.
The Australian Competition and Consumer Commission released an interim report on Wednesday detailing the Commission's stance on the role of Apple and Google and the app store. The problem, the ACCC asserts, is the duality of Apple and Google's roles as both store operators and vendors.
"Apple and Google don't only run the app marketplaces; they also compete within them with their own apps. They have the ability and incentive to promote their own apps over others, and they control the terms that their competitors must comply with to gain access to their store," ACCC Chair Rod Sims said. "To address this market power, we believe app developers should have more information about how their apps are made discoverable to consumers and that consumers should have the ability to change or remove any pre-installed or default apps."
The ACCC is hoping to work with the two firms to meet in the middle but is willing to enact new regulations if the firms don't cooperate.
The ACCC's report comes after a recent appearance by Google and Apple at a hearing on Capitol Hill last week. Representatives from both firms were grilled by lawmakers, who also heard testimony from representatives of other firms who made allegations ranging from exorbitant fees to stealing ideas. Fights over Apple and Google's app store policies have also become the subject of numerous lawsuits, including a notable suit against Apple by Epic Games.
Both firms' shares don't appear to have been too negatively affected; both companies experienced a bit of downward pressure on Wednesday but experienced different day-end results. Google Managed to come in 3% higher, but Apple felt a bit of sting at a 0.6% loss. Both companies were up by 2:30 p.m. on Thursday, with Google up by 1.6% and Apple up by 0.6%.