The UK’s Competition and Markets Authority (CMA) is calling for an investigation into Apple and Google’s mobile ecosystems.
As reported by CNBC, the CMA may use its powers under the new Digital Markets, Competition and Consumers Act (DMCC) to examine possible anti-competitive behaviour from the two companies given their dominance of the UK’s mobile markets.
However, it proposes that no further action be taken on cloud gaming given “primary concerns have been addressed”.
Following a preliminary investigation, an independent inquiry group has recommended a review into the UK mobile ecosystem and assess if the two megacorps have Strategic Market Status (SMS) which potentially gives them a self-preferential position in the market.
The independent inquiry group alleged Apple’s App Store rules “restrict other competitors from being able to deliver new, innovative features that could benefit consumers” and makes it difficult for smaller developers to operate without having to use the App Store.
The investigation also looked at mobile cloud gaming but said that as Apple made changes to allow cloud gaming apps to be sold via the App Store during the course of the investigation, “the group has provisionally concluded there is no need for intervention by the CMA in mobile cloud gaming”.
The group also alleged Google and Apple have a revenue-sharing agreement to make Google the default search engine on iPhone which “significantly reduces their financial incentives to compete in mobile browsers on iOS”.
“Markets work best when rival businesses are able to develop and bring innovative options to consumers,” said Margot Daly, chair of the CMA’s independent inquiry group. “Competition between different mobile browsers is not working well and this is holding back innovation in the UK.”
Apple dispute the claims and said inteventions made under the DMCC “would undermine user privacy and hinder our ability to make the kind of technology that sets Apple apart”.
“Apple believes in thriving and dynamic markets where innovation can flourish,” Apple said in a statement to CNBC. “We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.”
The CMA expects to make a final decision in March 2025. Google, Apple, and other interested parties have until 13th December to respond to the inquiry group’s provisional report. The DMCC will come into effect in January 2025.
The CMA closed its investigation into Apple’s in-app payment system back in August “on the grounds of administrative priority”.
At the time, the CMA said it no longer considered the investigation a priority but stressed that the case’s closure “does not constitute a decision by the CMA”.
Apple is reportedly set to continue its slow and steady expansion into gaming with the launch of a new game-focused iOS app that’ll gather the likes of a store, recommendations, achievements, and social features into one place.
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