CMA Seeks Inquiry into Apple and Google’s Prevalence in the UK Mobile Market
“Rivalry among various mobile browsers is not functioning effectively, which is impeding progress in the UK.”
The UK’s Competition and Markets Authority (CMA) is calling for an examination of Apple’s and Google’s mobile platforms.
According to CNBC, the CMA may utilize its authority under the new Digital Markets, Competition and Consumers Act (DMCC) to investigate potential anti-competitive actions from both companies due to their stronghold over the mobile market in the UK.
However, it suggests that no further measures should be taken regarding cloud gaming as “major concerns have been resolved”.
After a preliminary review, an independent inquiry panel recommended an evaluation of the UK mobile ecosystem to determine whether the two tech giants hold a Strategic Market Status (SMS) that possibly grants them a preferential advantage in the market.
The independent inquiry panel claimed that Apple’s App Store policies “hamper other competitors from introducing new, innovative features that could enhance consumer experience” and complicate the ability of smaller developers to thrive without relying on the App Store.
The inquiry also examined mobile cloud gaming but noted that, since Apple modified its policies to permit cloud gaming apps to be available via the App Store during the investigation, “the panel has tentatively concluded that there is no necessity for CMA intervention in mobile cloud gaming”.
The panel additionally alleged that Google and Apple have a revenue-sharing agreement that positions Google as the default search engine on iPhones, which “significantly diminishes their financial motivation to compete in mobile browsers on iOS”.
“Markets operate optimally when competing firms can innovate and offer new solutions to consumers,” stated Margot Daly, chair of the CMA’s independent inquiry panel. “Rivalry among various mobile browsers is not functioning effectively, which is impeding progress in the UK.”
Apple disputes these allegations and argues that interventions made under the DMCC “would compromise user privacy and hinder our ability to create the type of technology that distinguishes Apple.”
“Apple champions vibrant and dynamic markets where in