The Competition and Markets Authority is consulting on launching a market investigation of Apple and Google’s market power in mobile browsers and Apple’s restrictions on cloud gaming through the App Store.
“When it comes to how people use mobile phones, Apple and Google hold all the cards. As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice.
The published report comes after a year of study on companies’ mobile ecosystems. If we look at the study’s findings, Apple and Google are in a duopoly based on dominance in mobile exosystems, operating systems, application stores, and web browsers.
Research shows that 97% of all mobile web searches in the UK in 2021 will be from Apple or Google-powered browsers. This is thought to be due to Apple’s restriction on alternative engines in its devices. It is also emphasized that applications such as Google Chrome and Safari are already installed on the devices.
“We all rely on browsers to use the internet on our phones, and the engines that make them work have a huge bearing on what we can see and do. Right now, choice in this space is severely limited and that has real impacts – preventing innovation and reducing competition from web apps. We need to give innovative tech firms, many of which are ambitious start-ups, a fair chance to compete.”
Apple has also blocked the release of cloud gaming services in the App Store. The cloud gaming system, which has been on the rise in the past years, allows games to be played in high quality on another device without downloading them one by one. Apple is accused of hindering the growth of this industry, causing mobile users to miss out on these benefits.
The proposed market research will assess concerns identified to date in both areas. If they are judged to be correct, legally binding orders will be issued to the companies. In addition, the CMA is launching a competition law investigation into Google’s terms on how users can make in-app payments. There is also an existing competition law investigation into Apple’s App Store terms and conditions, which the CMA opened in March 2021.
“We have always been clear that we will maximise the use of our current tools while we await legislation for the new digital regime. Today’s announcements – alongside the 8 cases currently open against major players in the tech industry, ranging from tackling fake reviews to addressing problems in online advertising – are proof of that in action.”
Without interventions, both companies are expected to stabilize their industry dominance. The CMA must conclude a market investigation 18 months from the date of reference. It is stated that the period may be extended by six months, depending on exceptional circumstances.
