Apple and Google may be forced to make changes over mobile platform ‘duopoly’
Apple and Google hold an “effective duopoly” with their mobile platforms and may be forced to open them up to more competition, a UK watchdog has said.
The Competition and Markets Authority (CMA) has announced proposals to give the US tech giants “strategic market status” for their mobile platforms, which could enforce changes that will benefit consumers, businesses and app developers.
Under new rules which recently came into force, firms designated with the status can have conduct requirements imposed on them which boost competition for UK businesses and choice for consumers.
The regulator has outlined “targeted and proportionate” possible actions for each firm to improve competition across app stores, so-called interoperability, consumer choice and artificial intelligence (AI) services.
Apple and Google both criticised the proposal to designate their platforms with the special status, but consumer group Which? said it should ultimately lead to more innovation and choice for consumers.
An earlier market study by the CMA published in 2021 found that Apple and Google dominated mobile ecosystems across operating systems, app stores and web browsers.
It said this meant the two companies were in a position to effectively set the rules on how mobile browsers worked on their devices.
Around 90% to 100% of UK mobile devices run on Apple or Google’s mobile platforms, according to the CMA.
Sarah Cardell, chief executive of the regulator, said: “Apple and Google’s mobile platforms are both critical to the UK economy – playing an important role in all our lives, from banking and shopping to entertainment and education.
“But our investigation so far has identified opportunities for more innovation and choice.”
She added that action needed to be taken swiftly.
“Time is of the essence – as competition agencies and courts globally take action in these markets, it’s essential the UK doesn’t fall behind,” she said.
Potential measures outlined by the CMA include action on app stores, making the app review process fair and transparent for developers, and allowing smartphone users to “steer” away from app stores to make purchases.
The CMA will also look to give app developers interoperable access to Apple functionality so they can create competitive products and services.
It also wants to address the restrictions that Apple places on digital wallets so other financial technology firms can compete, while allowing smartwatches and headsets to connect seamlessly with mobiles.