Apple and Google may be required to alter their mobile services in the UK, according to proposed findings from the UK’s competition regulator.
The Competition and Markets Authority (CMA) is investigating the tech giants regarding their app stores, browsers, and operating systems. The CMA noted that “around 90-100% of UK mobile devices run on Apple or Google’s mobile platforms,” indicating that these firms maintain “an effective duopoly.”
Apple expressed concern that the ruling could negatively affect its UK customers, while Google described the decision as “both disappointing and unwarranted.”
A law enacted last year allows the regulator to mandate changes if a company is found to possess excessive market power. The proposed decision would classify Apple and Google as having “strategic market status.”
The companies have one month to present their arguments to the CMA before the decision is finalized. If enacted, the companies may need to modify their services to enhance competition and provide more choices for consumers.
The CMA’s focus includes the companies’ app stores, specifically how prominently Apple and Google feature their own apps in comparison to competitors.
CMA Chief Executive Sarah Cardell stated that the proposals “would enable UK app developers to remain at the forefront of global innovation while ensuring UK consumers receive a world-class experience.”
Responses from Apple and Google
An Apple spokesperson voiced concerns that the proposed rules could undermine user privacy and security, hinder innovation, and compel the company to share its technology with foreign competitors. They emphasized a commitment to engaging with the regulator to highlight these risks.
Google’s Senior Director of Competition, Oliver Bethell, emphasized the importance of evidence-based and proportionate regulation, warning against potential growth barriers in the UK. He highlighted that the Android operating system, Chrome browser, and Play app store provide users with choice, security, and innovation. Google remains committed to constructive engagement with the CMA throughout this process.
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Both Android and Blink, which powers Chrome, are open source, allowing developers to utilize their underlying code for free, which Google argues fosters competition and lowers product costs.
Consumer rights group Which? welcomed the regulator’s investigation, with Rocio Concha, director of policy and advocacy, noting that while these companies have driven innovation, their dominance is harming consumers and businesses reliant on them.
Global Regulatory Context
Apple and Google, along with other tech giants, are currently facing multiple competition and regulatory investigations in the UK, EU, and US, following new laws introduced in these regions.
Apple has been subject to competition restrictions in the EU and recently contested a €500 million fine imposed by the European Commission for allegedly preventing app developers from promoting alternative marketplaces to App Store users. The company is also contesting similar allegations related to payment options in its US App Store.
Last month, the CMA announced in a separate investigation that Google holds strategic market status in search and advertising. While acknowledging the benefits of Google search—accounting for over 90% of UK searches—the CMA indicated there may be opportunities to enhance openness and competition in the sector. The watchdog clarified that it is not accusing Google of anti-competitive practices but will outline a “roadmap” of potential business changes ahead of a final decision in October.
SOURCE: BBC
