The Competition and Markets Authority (CMA), of the United Kingdom, has requested a thorough investigation into the dominance of Apple and Google in the country’s mobile market. The CMA, a non-ministerial department, is tasked with promoting business competition and reducing anti-competitive practices in the UK.
It’s not the first time Apple and Google has come under the microscope, with the EU opened a non-compliance procedure against Apple, pointing to them prevented devs from informing customers about cheaper options or promotions outside the App Store. Additionally, in October 2024, Google was ordered to open the Play Store to competing third-party App Stores in the U.S. and give these stores full access to apps, unless developers choose otherwise.
CMA’s independent inquiry group has done an in-depth assessment of the mobile market
On November 22, CMA released a report detailing the provisional findings of an independent inquiry group that conducted an in-depth assessment of the mobile market. The report states that “the mobile browsing markets are not working well for UK businesses and millions of phone users. Most concerns that have been identified relate to Apple’s policies that determine how mobile browsers, which are the way we access the web on mobiles, work on Apple’s devices.“
The investigation was initiated following the CMA’s Mobile Ecosystems Market Study back in 2021, which found that Apple and Google have maintained an effective duopoly over mobile ecosystems, including operating systems, app stores, and web browsers on mobile devices. Moreover, this dominance is causing trouble for other competitors and small developers.
A few of the findings regarding both Apple and Google’s ill practices include:
- Apple’s policies restrict competitors from introducing new, innovative features that can be beneficial for consumers.
- Other browser providers have raised concerns that they cannot offer a full range of features, such as faster webpages loading on the iPhone.
- A revenue-sharing agreement between the two companies reduces their financial incentives to compete in the mobile browser market on iOS.
- Both these companies manipulate user choices to make their own browsers appear as the easiest option, limiting browser options for users.
They were also investigating mobile cloud gaming, but the independent inquiry group has tentatively concluded that the CMA does not need to intervene, and has closed the case on the grounds of administrative priority as Apple has implemented changes allowing cloud gaming apps to be sold through the App Store. Thanks to this, CMA’s one of the main underlying concerns has been resolved.
CMA may exercise its powers under DMCC to conduct a formal investigation
Based on the above findings, the inquiry group has requested the CMA board to conduct an effective and comprehensive investigation into Apple and Google’s activities within the mobile ecosystem, under the new digital markets competition rules established by the Digital Markets, Competition, and Consumers Act, which will come into effect next year.
The new rules will grant the CMA authority to designate firms as having Strategic Market Status (SMS) about digital activity and they can impose suitable interventions. Margot Daly, chair of the CMA’s independent inquiry group, stated that “Markets work best when rival businesses can develop and bring innovative options to consumers. Through our investigation, we have provisionally found that competition between different mobile browsers is not working well and this is holding back innovation in the UK,”
Margot further explained, “Under those new powers, the CMA can consider the case for designating firms with strategic market status, taking account of the interplay between the specific markets that are the subject of this market investigation and Apple’s and Google’s wider mobile ecosystems.” However, the CMA must conduct a formal investigation before granting any firm the SMS status.
Apple disagreed with the findings, with an Apple Spokesperson telling CNBC that market interventions under the DMCC, “would undermine user privacy and hinder our ability to make the kind of technology that sets Apple apart.” The spokesperson added, “Apple 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.”
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