The UK Calls for Investigation into Apple and Google’s Mobile Ecosystems
The Competition and Markets Authority (CMA) in the UK is pushing for a thorough investigation into the mobile ecosystems of tech giants Apple and Google. Under the new Digital Markets, Competition and Consumers Act (DMCC), the CMA seeks to scrutinize potential anti-competitive practices by the two companies, who currently hold significant control over the UK’s mobile markets.
While the CMA has expressed concerns about cloud gaming, it has indicated that the primary issues have been addressed and no further action is necessary in this regard.
Analysis of the UK Mobile Ecosystem
Following an initial probe, an independent inquiry group has recommended a close examination of the UK mobile ecosystem to determine whether Apple and Google enjoy Strategic Market Status (SMS). This status could potentially give them a preferential position in the market, raising concerns about fair competition.
The inquiry group has accused Apple of imposing strict App Store rules that hinder competitors from introducing innovative features that could benefit consumers. Additionally, these rules make it challenging for smaller developers to operate independently outside the App Store.
Regarding mobile cloud gaming, the group noted that Apple had made changes allowing cloud gaming apps to be sold through the App Store, leading to the provisional conclusion that CMA intervention in this area may not be necessary.
Furthermore, the inquiry group highlighted a revenue-sharing agreement between Google and Apple, where Google becomes the default search engine on iPhones. This agreement allegedly diminishes the financial incentives for competition in mobile browsers on iOS.
Apple’s Response and Future Outlook
Margot Daly, chair of the CMA’s independent inquiry group, emphasized the importance of competition for innovation in markets. She stated, “Competition between different mobile browsers is not working well and this is holding back innovation in the UK.”
Apple has refuted the allegations, expressing concerns that interventions under the DMCC could compromise user privacy and inhibit the company’s ability to develop unique technologies that distinguish Apple from its competitors.
Apple stated to CNBC, “Apple believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.”
The CMA is expected to reach a final decision by March 2025. Google, Apple, and other stakeholders have until December 13th to respond to the inquiry group’s provisional report. The DMCC is set to take effect in January 2025.
In August, the CMA concluded its investigation into Apple’s in-app payment system due to administrative priorities. Although the case was closed at that time, the CMA clarified that it did not signify a final decision on the matter.
Reportedly, Apple is expanding its presence in the gaming industry with the imminent launch of a new game-focused iOS app. This app will consolidate features such as a store, recommendations, achievements, and social elements into a single platform.