Apple and Google, the tech giants behind massive mobile ecosystems, are facing dual antitrust probes in the U.K.
The investigations, launched by the U.K. Competition and Markets Authority (CMA), aim to determine whether Apple and Google hold “strategic market status” in their respective mobile ecosystems, including operating systems, app stores and smartphone-based browsers. According to CNBC, the probes will examine the impact on users and businesses developing innovative services or content for mobile devices.
The CMA’s investigations come after the implementation of the Digital Markets, Competition and Consumers Act (DMCC) earlier this year, which grants the regulator enhanced regulatory powers. Under the DMCC, large companies with significant market power in digital activities can be designated as having “strategic market status.” The CMA can then impose changes to prevent potential anti-competitive behavior by these companies.
According to the CMA, nearly all mobile devices sold in the U.K. come pre-installed with either Apple’s iOS or Google’s Android operating systems. Additionally, their app stores and browsers have exclusive or leading positions on their platforms compared to alternative products and services. With 94% of people aged 16 or above in the U.K. having access to smartphones, and the average Brit spending around three hours a day on mobile devices, the impact of Apple and Google’s dominance is significant.
The CMA will focus on three key issues during the investigations. First, it will examine the extent of competition between Apple and Google’s mobile ecosystems. Second, it will assess whether the tech giants leverage their market power into other activities. Finally, the CMA will investigate potential exploitative conduct by Apple and Google.
Sarah Cardell, the chief executive of the CMA, highlighted the potential benefits of more competitive mobile ecosystems. She stated that increased competition could foster new innovations and opportunities across various services, such as app stores, browsers, and operating systems. Cardell also emphasized that better competition could boost growth in the U.K., enabling businesses to offer new and innovative products and services on Apple’s and Google’s platforms.
Apple has expressed its belief in thriving and dynamic markets that foster innovation. The company stated that it faces competition in every segment and jurisdiction where it operates, and it remains focused on the trust of its users. Apple also highlighted the significant contribution of the iOS app economy to job creation and the ability for developers, both big and small, to reach users on a trusted platform.
Google has not yet commented on the investigations.
In a separate case covered here, Apple is currently defending itself against a class-action suit in the U.K. The suit accuses the tech giant of holding millions of iPhone and iPad users “captive” and forcing them to pay excessively high App Store commissions. The claimants argue that Apple’s monopoly on the relevant market has allowed it to derive exorbitant profits from the App Store. Apple’s lawyers contend that its commissions are fair and reasonable, and that customers have not suffered any loss.
The U.K.’s class-action system is still in its early stages, and this suit against Apple is the first mass lawsuit against a Big Tech company. Similar cases are expected to follow, including a $1.1 billion case against Google over app developer commissions.