The U.K. Competition and Markets Authority (CMA) published an interim report on Tuesday (Dec. 14), that found Google and Apple “exercise a vice-like grip over mobile devices.”
Andrea Coscelli, head of the regulator, is concerned that this duopoly over how people use mobile phones is “causing millions of people across the U.K. to lose out.” Earlier this year, the CMA launched a probe over concerns that Apple and Google could have too much control over operating systems, app stores and web browsers, all together referred to as “ecosystems.”
The CMA’s findings say the two companies “have been able to leverage their market power to create largely self-contained ecosystems,” making it particularly difficult for other firms to enter and compete in any of the markets where they operate.
The report also contains potential remedies the regulator could implement to alleviate some of these concerns, including to facilitate switching between iOS and Android phones; make it easier to install apps outside the App Store or Play Store; enable users to pay for apps using alternative methods to Apple’s and Google’s payment systems; and give user more alternatives to their browsers when these are the default options.
The regulator opened a consultation until Feb. 7 to receive feedback from stakeholders on the findings of this interim report. The final report is expected to be issued in June 2022.
In addition to this investigation, the CMA is also investigating Google’s Privacy sandbox proposal and Apple’s App Store over competition concerns.
Findings from the report could also be used by the newly created Digital Markets Unit to declare that Google and Apple meet the criteria for “Strategic Market Status.” Companies that have this status will be subject to a new regulation, once this is approved, that includes respecting a code of conduct that will govern their behavior.
