UK CMA Investigates Apple and Google's Mobile Dominance

Mobile Ecosystem Dominance Under Scrutiny

The United Kingdom’s competition regulator has announced a comprehensive market study focusing on the significant influence of Apple and Google within the mobile technology landscape.

This investigation will thoroughly assess the companies’ smartphone platforms – iOS and Android – alongside their associated app stores (App Store and Play Store) and web browsers (Safari and Chrome).

Concerns Regarding a Duopoly

The Competition and Markets Authority (CMA) has expressed apprehension that the “effective duopoly” held by these tech giants could potentially be detrimental to consumers.

The study’s scope is extensive, addressing the layered access points created by their dominance. These layers impact how individuals access various products, content, and services.

Impact on Digital Markets

Examples of these services include music and video streaming, fitness tracking, online shopping, and banking, as highlighted by the CMA.

The investigation extends to connected devices like smart speakers, smartwatches, and home automation systems, examining whether this control is “stifling competition” across numerous digital sectors.

The CMA is also concerned that this situation could lead to diminished innovation, increased prices for devices and applications, and higher advertising costs for consumers.

Effects on Businesses

The deep dive will also analyze the impact of Apple and Google’s market power on other businesses, particularly app developers who depend on these platforms to reach their customer base.

Ongoing Investigations

Currently, the CMA is already conducting an investigation into Apple’s App Store, prompted by antitrust complaints from developers.

Furthermore, the regulator is reviewing Google’s plans to phase out third-party tracking cookies, following concerns from adtech firms and publishers about potential anti-competitive effects.

The CMA previously indicated a willingness to accept concessions from Google to prevent a complete removal of cookie support if it were deemed harmful to competition.

A Broader Approach

While these existing investigations overlap with the new mobile ecosystem study, the CMA emphasizes that the latter will be significantly more expansive.

The regulator intends to integrate its approach across all related cases, aiming for optimal results for both consumers and businesses.

Timeline and Feedback

The CMA has allocated a year to complete its examination of Apple and Google’s mobile ecosystems.

Interested parties are invited to submit feedback on the study’s scope by July 26th. The CMA is particularly seeking input from app developers through a dedicated questionnaire, also due by the same date.

Addressing the Influence of Major Technology Companies

The competition authority has previously investigated the digital advertising sector, identifying significant concerns regarding Google’s dominant position within it.

This prior investigation has informed the U.K. government’s strategy for updating competition regulations to account for the substantial market influence wielded by large digital corporations. The CMA indicated that the current market study, focused on the mobile power of “Gapple,” could similarly contribute to broader U.K. competition law reforms.

Last year, the U.K. announced plans to establish a “pro-competition” framework for regulating internet platforms, including the creation of a dedicated Digital Markets Unit within the CMA, which commenced operations earlier this year.

While the legislation for these reforms has not yet been presented to parliament, the government has expressed its intention for the competition regulator to be able to “proactively influence platforms’ conduct” to prevent detrimental practices—further stating its support for implementing interventions before a platform is designated as having “strategic market status.”

Germany has already enacted comparable reforms to its competition legislation earlier this year, allowing for proactive measures to address large digital platforms deemed to have “paramount significance for competition across markets.” Its Federal Cartel Office has swiftly initiated several proceedings to assess whether Amazon, Google, and Facebook meet this criteria.

The CMA also appears eager to begin addressing internet gatekeepers.

In a statement, CEO Andrea Coscelli remarked:

The European Union also revealed its proposals for regulating Big Tech last year, presenting its Digital Markets Act plan in December, which will apply a uniform set of operational rules to so-called “gatekeeper” platforms operating throughout the EU.

A clear trend in Europe regarding digital competition is toward increased scrutiny and regulation of the largest platforms, with the aim of enabling antitrust authorities to implement measures that foster the growth of smaller businesses.

Some critics argue that this approach merely benefits the tech giants by focusing on peripheral adjustments, while more substantial interventions—such as breakups—are necessary to revitalize captured markets.

Apple and Google were contacted for statements regarding the CMA’s market study.

A Google spokesperson stated: “Android offers users greater choice than any other mobile platform in selecting their preferred applications, and it facilitates successful businesses for numerous developers and manufacturers. We support the CMA’s efforts to thoroughly understand the nuances and distinctions between platforms before formulating new regulations.”

Google reports that the Android App Economy generated £2.8 billion in revenue for U.K. developers last year, supporting 240,000 jobs nationwide—citing a Public First report commissioned by the company.

The technology company also highlighted operational changes it has already implemented in Europe, following antitrust actions by the European Commission, such as introducing a choice screen on Android allowing users to select from a range of alternative search engines.

Earlier this month, it agreed to modify the underlying format of that choice screen, transitioning from an unpopular auction model to free participation.