The CMA requests an investigation into Apple and Google’s mobile market dominance in the UK

As a long-time user and observer of the digital market landscape, I find it refreshing to see authorities like the CMA taking a stand against monopolistic practices that stifle competition and innovation. The dominance of Apple and Google in the mobile market has been a topic of discussion for years, and it’s high time they faced proper scrutiny.

In the United Kingdom, the Competition and Markets Authority (CMA) has called for an extensive review of Apple and Google’s significant influence within their mobile market. The CMA, a governmental body, is responsible for fostering fair competition among businesses and limiting anti-competitive behaviors in the UK.

On different occasions, Apple and Google have found themselves under scrutiny. Recently, the EU initiated a compliance procedure against Apple, accusing them of blocking developers from informing users about cheaper alternatives or deals outside the App Store. In October 2024, a court order mandated Google to make the Play Store accessible to rival third-party app stores in the U.S., granting these platforms full access to apps, unless developers explicitly opt out.

CMA’s independent inquiry group has done an in-depth assessment of the mobile market

On November 22nd, the CMA (Competition and Markets Authority) shared a report outlining preliminary findings from an independent investigation into the mobile market. The report suggests that the current state of mobile browsing isn’t beneficial for UK businesses or millions of phone users, primarily due to Apple’s policies governing how web access works on their devices via mobile browsers – which is essentially how we navigate the internet on our mobiles.

The CMA requests an investigation into Apple and Google’s mobile market dominance in the UK

The investigation began after the Mobile Ecosystems Market Study conducted by the CMA in 2021, which revealed that Apple and Google have held a strong duopoly within the mobile ecosystem, covering areas such as operating systems, app stores, and web browsers on mobile devices. This dominance is causing issues for other competitors and small developers alike.

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

According to recent discoveries, the investigative team has urged the Competition and Markets Authority (CMA) board to carry out a thorough and wide-ranging examination of Apple and Google’s actions within their mobile markets. This investigation will be conducted under the new digital competition rules set by the Digital Markets, Competition, and Consumers Act, which will become law next year.

Under the latest regulations, the CMA will be empowered to label certain companies as having Strategic Market Status (SMS) concerning digital activities, enabling them to implement appropriate actions. As chair of the CMA’s independent investigation committee, Margot Daly commented that “Markets operate most effectively when multiple businesses can create and offer innovative solutions to consumers. Preliminarily, our research suggests that competition between mobile browsers is not functioning optimally, thereby impeding innovation within the UK.

Margot continued to clarify, “With these new powers, the Competition and Markets Authority (CMA) can examine whether certain companies should be designated as having Strategic Market Status (SMS). This assessment will include an analysis of how the particular markets under investigation interact with Apple’s and Google’s broader mobile market ecosystems.” However, it is important to note that the CMA cannot grant SMS status without first conducting a thorough investigation.

Apple expressed disagreement with the findings, stating to CNBC that interventions under the DMCC might “jeopardize user privacy and impede our capacity to create technology that distinguishes Apple.” The spokesperson further explained, “Apple advocates for vibrant and innovative markets. We encounter competition in every market where we operate, and our primary concern is always maintaining our users’ trust.

2024-11-26 11:11