The UK’s Competition and Markets Authority (CMA) has launched separate investigations into Apple and Google’s mobile ecosystems. The watchdog is using its new regulatory powers under the Digital Markets, Competition and Consumers Act to scrutinize the tech giants’ practices. The investigations will examine whether Apple or Google’s mobile operating systems, app stores, and browsers give either company a strategic position in the market.
The CMA wants to know the level of competition and any barriers preventing rivals from offering competing products and services. The regulator will also look into whether Apple or Google are favoring their own apps and services, which often come pre-installed on iOS and Android devices. Examples include Google’s YouTube and Apple’s Safari browser.
The CMA will investigate if the companies force app makers to accept unfair terms and conditions to distribute apps on their app stores. The CMA has until October to conclude the investigation.
CMA investigates mobile market dominance
Possible outcomes include forcing either company to open up access to key functions that other apps need to operate on mobile devices or allowing users to download apps outside of their app stores. Google stated that “Android’s openness has helped to expand choice, reduce prices and democratize access to smartphones and apps.” The company prefers “a way forward that avoids stifling choice and opportunities for UK consumers and businesses alike, and without risk to UK growth prospects.”
Apple said it “believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.”
The CMA’s probes will focus on the operating systems, app stores, and browsers on mobile devices.
The goal is to understand the impact on both users and businesses that develop content and services. The CMA will examine competition within these ecosystems, how Google and Apple wield their market power, and whether they impose unfair terms on developers for app store access. Sarah Cardell, chief executive of the CMA, emphasized the importance of mobile devices and their operating systems.
Cardell noted that more competitive mobile ecosystems could lead to new innovations and opportunities across various services that millions of people use daily. Alex Haffner, a competition partner at Fladgate, commented, “This announcement was expected ever since the Digital Markets, Competition and Consumer (DMCC) Act 2024 was passed. It was clear that Big Tech would fall under the CMA’s regulatory microscope.”
