The two investigations will determine whether Apple and Google have “strategic market status” and the impact on people who use mobile devices and businesses that develop services or content for these devices.
The parallel probes will assess both tech giants’ position in their respective ‘mobile ecosystems’, which include the operating systems, app stores and browsers that operate on mobile devices.
Importance of effective competition
Virtually all mobile devices sold in the UK are pre-installed with either iOS (Apple) or Android (Google), and Apple and Google’s own app stores and browsers have either exclusive or leading positions on their platforms compared to alternative products and services. This means Apple and Google are also able to exert considerable influence over much of the content, services and technological development provided on a mobile device.
The CMA said that, given the importance of mobile ecosystems to people, businesses and the economy, it is critical that competition works well.
The watchdog said effective competition could ensure consumers and businesses are treated fairly by Apple and Google in relation to the terms and conditions they impose.
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Effective competition could also ensure open opportunities for businesses to innovate and deliver a range of content, services and technological developments to consumers on a mobile device. This may include AI products and services, contactless payments provided through digital wallets, and new types of apps accessed through a mobile browser. This could in turn support sustained growth opportunities in the parts of the economy that rely on mobile ecosystems.
Sarah Cardell, chief executive of the CMA, said: “The operating systems, apps and browsers installed on our phones and tablet devices act as our gateway into the digital world – whether that is communicating with our friends and loved ones, buying from businesses or accessing creative content.
“More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems. Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple’s and Google’s platforms.”
Rocio Concha, Which?’s director of policy and advocacy, said: “It’s welcome to see the Competition and Markets Authority using the powers that it was recently given by Parliament to tackle long-standing issues in the tech sector.
“The CMA’s work has clearly shown that the dominance of Apple and Google in app stores, operating systems and web browsers on mobiles has been bad for business. It will likely have led to consumers missing out on new innovations, having less choice, and ultimately facing higher prices.
“Fairer and more competitive markets don’t just benefit consumers and businesses, but they also boost innovation and economic growth.”
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