CMA Targets Apple and Google Mobile Duopoly

The UK Competition and Markets Authority (CMA) wants to implement stricter rules on Apple and Google to diminish their mobile ecosystem dominance. The CMA wants to push more innovation and choice in the market.

In separate filings for each company, the CMA stated it is proposing giving the US technology giants so-called Strategic Market Status (SMS) in respect to their mobile platforms, comprising OSes, native app distribution, browsers, and engines. It began probes into the companies’ mobile ecosystems in January.

The SMS status would effectively pave the way for more regulation requiring the companies to make changes to the way they operate their services, giving more choice to consumers. Key concerns for the CMA center around their app stores and how prominent in-house apps feature compared with rival offerings, high commissions on some in-app purchases, and certain default settings which may also favour the companies’ own services.

The CMA noted that around 90% to 100% of UK mobile devices run on Apple or Google’s mobile platforms, giving the pair an effective duopoly. Sarah Cardell, chief executive at the CMA, said Apple and Google’s mobile platforms are critical to the UK economy, but their investigation identified opportunities for more innovation and choice.

“The targeted and proportionate actions we have set out today would enable UK app developers to remain at the forefront of global innovation. Competition agencies and courts globally are also taking action, and it is essential “the UK doesn’t fall behind,” Cardell added.

In response, Google called the decision both disappointing and unwarranted, while Apple expressed concerns about how the ruling would impact UK consumers. The CMA called for feedback from the companies and is due to make a final decision on the SMS designation by 22 October.