 "UK's competition regulator to assess if Apple, Google have too much influence and power in smartphones")
The UK’s competition watchdog, the Competition and Markets Authority (CMA), is once again turning its attention to Apple and Google, investigating their dominant positions in the mobile ecosystem. The CMA is assessing whether the two tech giants hold a “strategic market status” (SMS) that could limit competition and innovation in the smartphone market. The move comes as the CMA flexes its new powers under the Digital Markets, Competition, and Consumers Act of 2024, aimed at tackling big tech’s influence.
According to market data from Statcounter, as of December 2024, Apple’s iOS holds 47.7 per cent of the mobile operating system market in the UK, while Android accounts for 51.9 per cent. The investigation will look into how Apple and Google’s control over mobile operating systems, app stores, and browser engines impacts both users and developers. The aim is to see if their power limits competition, such as through practices like manipulating app store search results to reduce competition.
CMA investigates Apple and Google’s market power
The CMA’s investigation will focus on whether Apple and Google have SMS in the mobile ecosystem. SMS refers to companies that have considerable market influence and the ability to affect digital markets. For Apple, the investigation will cover areas like mobile operating systems, the App Store, and mobile browsers. Google’s investigation will focus on Android, the Google Play Store, and its dominance over Chrome and Blink browser engines.
This investigation, now in its “Stage 1” phase, invites public comment on these issues from January 24 to January 28. The CMA will collect evidence until March and plans to engage with Apple by April to decide on any potential corrective actions. Stage 2 will continue until July, when the CMA will issue a decision on Apple’s SMS status and possible conduct requirements. A final decision will be made by October 22.
Strengthening competition and innovation
The CMA’s goal is to increase competition in the UK’s digital markets, which it believes will help foster innovation and boost economic growth. CMA chief executive Sarah Cardell emphasized that better competition could lead to more affordable pricing and greater opportunities for smaller players in the market. Apple, however, has defended its position, stating that it supports dynamic markets where innovation can thrive. The company argued that the App Store ecosystem has created thousands of jobs in the UK and that it faces competition globally in every market it operates.
This latest investigation follows the 2021 Mobile Ecosystems Market Study, which concluded that Apple and Google essentially have a duopoly over mobile ecosystems, limiting competition, particularly in browser functionality and cloud gaming. While Apple made some changes to its App Store rules in response to the CMA’s concerns, the watchdog believes further investigation is needed now that it has the legal tools to act.
CMA’s new powers and potential impact
With the new powers granted by the Digital Markets, Competition, and Consumers Act of 2024, the CMA now has the authority to enforce corrective actions if it finds that Apple or Google is restricting competition. This could include requiring the companies to allow greater interoperability between services or to change how their platforms operate to create a more level playing field. The UK’s competition regulator is determined to use these powers to ensure that the market remains open and competitive.
Given Apple’s substantial market share and its control over the App Store, it’s likely the company will be designated as having SMS. The challenge for the CMA now will be deciding how to address the issues it uncovers and what measures to implement to ensure fair competition in the UK’s digital economy. The investigation marks another chapter in the ongoing global scrutiny of big tech companies and their influence on digital markets.
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