Key Points
- The UK’s CMA has launched investigations into Apple and Google’s dominance in mobile ecosystems.
- The probe focuses on operating systems, app stores, and browsers under the new DMCC law.
- Apple and Google defend their market positions, citing consumer trust and innovation.
- The CMA now has the power to enforce changes if firms are found to have strategic market status. The investigation aims to encourage market growth in the UK.
The UK’s Competition and Markets Authority (CMA) has launched an investigation into Apple and Google’s dominance in the mobile ecosystem to determine whether the companies are violating the country’s new digital competition rules.
The regulator is conducting parallel probes into the tech giants to assess whether they hold “strategic market status” in key areas such as mobile operating systems, app stores, and smartphone browsers. The investigation aims to evaluate the potential impact on consumers and businesses that rely on these platforms to develop and distribute their apps and services.
Apple has responded to the investigation, stating that it supports dynamic markets encouraging innovation and competition. A spokesperson emphasized Apple’s commitment to earning user trust and highlighted the positive impact of the iOS app economy in the UK, which supports thousands of jobs. The company expressed its willingness to cooperate with the CMA.
Similarly, Google’s competition director, Oliver Bethell, defended the Android platform, calling it a successful open-source operating system that has expanded consumer choice and reduced costs. He urged regulators to find a balanced solution that fosters innovation and growth without limiting consumer choice.
This investigation follows recent leadership changes at the CMA, with Doug Gurr, a former Amazon UK executive, stepping in as the new chair. The UK government has tasked regulators with promoting business growth by removing market barriers.
The probe follows the implementation of the Digital Markets, Competition, and Consumers Act (DMCC), a new law designed to prevent anti-competitive behavior in digital markets. Under this legislation, the CMA can impose changes on companies with strategic market status to prevent monopolistic practices.
The CMA will examine three key areas: the level of competition between Apple and Google, whether their market power extends into other business sectors, and potential exploitative practices.
With nearly all smartphones in the UK running either Apple’s iOS or Google’s Android and millions of users relying on their platforms daily, the CMA believes increased competition could spur innovation and economic growth.
