Apple and Google may be forced to overhaul their mobile platforms due to existing regulations potentially “limiting innovation and competition”, warns the UK’s Competition and Markets Authority (CMA). The CMA has highlighted that both tech companies hold a significant and entrenched market power.
The authority confirmed that both companies have been granted ‘strategic market status’ following an investigation into their mobile platforms. This designation could allow the regulator to intervene and foster increased competition, which it believes will benefit consumers and businesses alike.
With approximately 90% of UK smartphones operating on Apple or Google systems, the CMA’s action could alter how people utilise and pay for apps and services on these devices.
At the start of the year, the CMA was endowed with new powers to tackle entities it deems are monopolising digital markets. It initiated probes into Apple and Google’s mobile platforms, encompassing their operating systems, including iOS and Android, app stores, and browsers, reports the Mirror.
Will Hayter, executive director for digital markets at the CMA, said: “Apple and Google’s mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms’ rules may be limiting innovation and competition. Having taken into account the feedback received since our proposed decision, we have today designated Apple and Google’s mobile platforms with strategic market status.”
Earlier this year, Sarah Cardell, CMA chief executive. 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.”
Apple and Google smartphones enjoy widespread popularity across the UK, though they occupy distinct market positions. Apple’s iPhones dominate premium sales and command fierce customer loyalty. They possess substantial market share alongside millions of active users worldwide.
Meanwhile, Google’s Pixel handsets capture a considerably smaller portion of the global marketplace but attract devoted followers amongst particular user groups and maintain a strong footing in specific regions, including the UK, despite their overall reach representing merely a fraction of Apple’s dominance.
Google also ranks amongst the most powerful forces in the search engine sector. Both corporations wield considerable control over mobile platforms, app stores, and browsers.
Other major tech platforms include Microsoft, with its Windows operating system, Bing search engine and Office suite; Amazon, with AWS, Appstore and various devices; and Samsung, with its Tizen OS and hardware.
Beyond these giants, numerous other platforms are available, such as open-source operating systems like LineageOS and Ubuntu Touch, as well as a variety of software and service providers like DuckDuckGo for search and OpenStreetMap for mapping services.