Apple and Google’s mobile ecosystems investigated by competition watchdog

The UK’s competition watchdog is to investigate the mobile ecosystems of Apple and Google under new digital market rules that could see pro-competition interventions placed upon them.

The Competition and Markets Authority (CMA) said it would examine the mobile operating systems, app stores, and web browsers of the two firms on mobile devices to see if the US giants should be given strategic market status.

Under new rules which came into force at the start of the year, firms designated with the status can have conduct requirements imposed upon them which boost competition for UK businesses and choice for consumers.

The CMA said it could, for example, require the either company to open up access to functionality within its operating systems or app stores to third party apps.

Apple and Google dominate the mobile device market, with the CMA noting that virtually all such devices sold in the UK come with Apple’s iOS or Google’s Android operating systems pre-installed, and the firm’s own app stores and browsers have either exclusive or leading positions on their platforms compared to third-party products and services.

The CMA said its two investigations would examine the level of competition between and within the two firms’ mobile ecosystems, the possible leveraging of Apple and Google’s market power into other activities, and whether the firms are taking part in any exploitative conduct, including around terms and conditions for third-party app developers.

CMA chief executive Sarah Cardell said: “The operating systems, apps and browsers installed on our phones and tablet devices act as our gateway into the digital world – whether that is communicating with our friends and loved ones, buying from businesses or accessing creative content.

“More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems.

“Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple’s and Google’s platforms.”

In a statement, Apple said: “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.

“In the UK alone, the iOS app economy supports hundreds of thousands of jobs and makes it possible for developers big and small to reach users on a trusted platform.

“We will continue to engage constructively with the CMA as their work on this matter progresses.”

The announcement comes in the wake of the chairman of the CMA stepping down after the Chancellor said he had a “different strategic approach” from the Government.

Rachel Reeves told an audience in Davos, Switzerland, on Wednesday that Marcus Bokkerink believed he needed to “make way for somebody who does share the mission” of the Labour Government.

He left his position at the Competition and Markets Authority (CMA) earlier this week and will be replaced by former country manager of Amazon UK Doug Gurr.

Nevertheless, ministers stressed on Wednesday that the organisation’s independence will stay “intact”.

The Government has demanded that regulators, including the CMA, prioritise supporting growth as well as regulatory responsibilities.