The Competition and Markets Authority (CMA) has launched an investigation into Apple and Google’s mobile ecosystems. This marks the CMA’s second strategic market status (SMS) inquiry focused on these tech giants. Back in January, the CMA started looking into whether Google holds strategic market status in search and search advertising, aiming to evaluate the impact of these services on users and businesses in the UK.
Now, the CMA is turning its attention to Apple and Google because nearly every mobile device sold in the UK runs either on Apple iOS or Google Android. The CMA points out that Apple’s App Store and Google Play dominate their respective platforms, limiting competition from alternative services. This dominance gives these companies significant control over the content, services, and tech developments available on mobile devices.
The investigation will assess whether Apple and Google are fostering effective competition, ensuring fair treatment for consumers and businesses regarding their terms and conditions. Developers have expressed frustration over what they view as unfair pricing and restrictive technology practices imposed by both companies. The CMA believes that more competition could allow businesses to offer a wider variety of content and services to mobile users.
The investigation will also explore whether Apple and Google impose unfair terms on app developers as a prerequisite for access to their app stores. Furthermore, the CMA will examine how these companies leverage their influence in operating systems and app distribution. The focus is on whether Apple or Google are prioritizing their own apps over competitors and if there’s enough rivalry between these two mobile ecosystem providers.
Sarah Cardell, the CMA’s chief executive, emphasized that a more competitive mobile landscape could spur innovation and create new opportunities for millions of users. She underlined the importance of preventing any barriers that might hinder businesses from introducing innovative products on Apple’s and Google’s platforms.
Commenting on this latest investigation, Alex Haffner, a competition law expert, noted that the new Digital Markets, Competition and Consumer (DMCC) Act 2024 places these tech giants under the CMA’s regulatory watch. He remarked that it’s intriguing to observe how this aligns with the CMA’s evolving role and the government’s push for consistent regulations that promote growth. He anticipates that the CMA’s focus will intensify as it delves into the specific implications of the DMCC framework for these major tech companies.