UK Regulators Examine Mobile Ecosystem Dominance by Apple and Google

UK Competition Watchdog Investigates Apple and Google’s Mobile Platforms

The UK’s competition watchdog, the Competition and Markets Authority (CMA), has launched investigations into the impact of Apple and Google’s mobile platforms on consumers and businesses.

Impact on Consumers and Businesses

The CMA will examine the tech firms’ mobile operating systems, app stores, and browsers to determine whether both companies require tailor-made guidelines to regulate their behavior. The watchdog will look at the impact of Google and Apple’s mobile platforms on consumers and businesses, including app developers.

Strategic Market Status

The CMA will determine whether Apple and Google should be designated as having “strategic market status” under a new regulatory regime brought in under the Digital Markets, Competition and Consumers Act 2024. If they are deemed to have that status, the watchdog can impose “conduct requirements” or force changes such as making it easier for users to download apps outside Apple and Google’s own app stores.

Sarah Cardell’s Statement

According to Sarah Cardell, the CMA’s chief executive, both companies’ mobile platforms are consumers’ gateways into the digital world. She stated that more competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use.

Investigation Timeline

The CMA said it would complete its investigation by 22 October. The watchdog has already opened its first investigation under the new legislation into Google and the impact of the company’s search and advertising practices on consumers, news publishers, businesses, and rival search engines.

Industry Reaction

Alex Haffner, a partner at the UK law firm Fladgate, said the Apple and Google move was “wholly expected” but was taking place against a policy backdrop of a government seeking strong economic growth. He added that what is more interesting is how this fits into the very clear steer the CMA is getting from central government to ensure that regulation is consistently applied with its pro-growth agenda.

Government Response

Speaking in parliament, Business Minister Justin Madders said: “Competition is vital for driving investment and growth and the operational independence of the CMA will remain in place.” The GMB union criticized Doug Gurr’s appointment, describing it as a “slap in the face to workers”, while Ethical Consumer, a campaigning consumer cooperative, said it was “like something out of the Donald Trump playbook”.

Industry Statements

Google’s senior director of competition, Oliver Bethell, said Android is the “only example” of a successful open-source mobile operating system. He added that Google favors a way forward that avoids stifling choice and opportunities for UK consumers and businesses alike.

Apple stated its app store ultimately supports hundreds of thousands of UK jobs and the company would “engage constructively” with the CMA. An Apple spokesperson said: “We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.