As services such as FaceTime, WhatsApp and Zoom have replaced voice calling and SMS, do these present new harms for consumers?
Alexa and the smart-device market under the spotlight: Ofcom has announced the launch of a new programme of work intended to examine digital communications markets in the UK and ensure they are working well for consumers and businesses. Over the course of the next year, one focus area for the regulator will be the nature and intensity of competition among digital personal assistants and audiovisual ‘gateways’ – such as connected televisions and smart speakers – through which people access traditional TV and radio, as well as online content. Ofcom plans to consider consumer behaviour, future market developments, and the role and business models of major players and their bargaining power with content providers in order to determine whether any issues require “more formal examination”.
Internet-based communications also in Ofcom’s crosshairs: In addition to smart speakers, Ofcom will also be assessing the state of the UK’s online personal communication apps market – and whether digital innovations could risk new types of harm for end users. Services like FaceTime, WhatsApp and Zoom have become central to how consumers communicate and are now used by 94% of UK adults. Over the past decade, they have not just competed with traditional telecoms services, but in some cases steadily replaced them. The regulator is therefore interested in how online communications services are affecting the role of voice calling and SMS (delivered by telcos), and how competition and innovation in these markets may evolve over the coming years.
Interoperability of messaging services faces scrutiny: As online and traditional networks converge, Ofcom is looking to keep pace with disruptive developments in the sectors it oversees (such as new and emerging technologies, and changes in commercial models and supply chains), while ensuring that shifts in usage of communications services do not mean that consumers are less protected. In particular, Ofcom is seeking to understand whether any features of the market, including network effects and limited interoperability (i.e. the ability of apps to interact with each other) raises potential competition concerns. Interoperability has been the subject of much debate in the EU during the development of the Digital Markets Act. Last minute amendments saw interoperability requirements included within the regulation, although they could yet prove challenging to implement.
Source: https://www.ofcom.org.uk/phones-telecoms-and-internet/information-for-industry/digital-markets
