The duopoly of Apple and Google over the mobile ecosystem is limiting competition and consumer choice, according to the UK's Competition & Markets Authority (CMA).
The CMA launched an investigation earlier in 2021 into concerns that Apple and Google had too much control over operating systems, app stores and web browsers. In its newly-published interim report, the CMA accuses the companies of exercising a "vice-like grip" on mobile devices, with them able to control how online content is provided to users. The CMA also said that Apple and Google are "tilting the playing field towards their own services". For instance, Google's Chrome browser and app store are pre-installed on mobile Android mobile devices; and Apple does not allow other app stores on iPhones/iPads.
The CMA is worried that this behaviour is resulting in less competition and reduced choice for consumers, with people missing out on the benefits of new, innovative services/products. The CMA is also concerned that consumers are paying higher prices that would in a more competitive market. It has provisionally concluded that Apple and Google have used their market power to create self-contained ecosystems, making it extremely hard to a rival to enter the market and compete effectively.
The interim report suggests several measures that could be taken to address these concerns. These including making it easier for consumers to switch between Android and iOS devices when they want to replace/upgrade their device without a loss of data or functionality; making it easier to install web apps without going from the Play Store or App Store; enabling all apps to provide users with a choice of in-app payment methods, instead of having to use Apple and Google's payment systems; and making it easier for consumers to choose alternative services such as browsers by allowing them to set which browser they have as a default.
The CMA report suggests that Google and Apple would meet the 'Strategic Market Status' designation criteria for several of their ecosystem operations. CMA chief executive Andrea Coscelli said that intervention must address their substantial market power across operating systems, browsers and app stores. The CMA believes that using the new Digital Markets Unit (DMU) to do this would be the best option. Comments on the interim report must be submitted by 07 February 2022, with the CMA expecting to issue a final report in June 2022.
