CMA plans investigation into Apple and Google’s ‘effective duopoly’ on mobile

The Competition and Markets Authority (CMA) is consulting on the launch of a market investigation into Apple and Google’s market power in mobile browsers and Apple’s restrictions on cloud gaming through its App Store. In parallel, it is also taking enforcement action against Google in relation to its app store payment practices.

This follows a year-long study of the companies’ mobile ecosystems, the final report of which has been published today. The study found that Apple and Google have an effective duopoly on mobile ecosystems that allows them to exercise a stranglehold over these markets, which include operating systems, app stores and web browsers on mobile devices.

Without interventions, both companies are likely to maintain, and even strengthen, their grip over the sector, further restricting competition and limiting incentives for innovators.

While the report identified a range of potential interventions across these ecosystems, the CMA has looked at where it can take immediate targeted action to tackle these problems using its current powers. As a result, the CMA is now consulting on making a market investigation reference into mobile browsers and access to cloud gaming on mobile devices.

Andrea Coscelli, Chief Executive of the CMA, said: “When it comes to how people use mobile phones, Apple and Google hold all the cards. As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice.

“We all rely on browsers to use the internet on our phones, and the engines that make them work have a huge bearing on what we can see and do. Right now, choice in this space is severely limited and that has real impacts – preventing innovation and reducing competition from web apps. We need to give innovative tech firms, many of which are ambitious start-ups, a fair chance to compete.

“We have always been clear that we will maximise the use of our current tools while we await legislation for the new digital regime. Today’s announcements – alongside the 8 cases currently open against major players in the tech industry, ranging from tackling fake reviews to addressing problems in online advertising – are proof of that in action.”