Apple and Google have ‘effective duopoly’, claims CMA

The UK’s Competition and Markets Authority (CMA) could force significant changes on how tech giants Apple and Google operate their mobile services in the UK.

The regulator asserts that the two companies hold an “effective duopoly” over the mobile market, with 90-100% of UK mobile devices running on either Apple or Google’s platforms.

Focusing on app stores, browsers, and operating systems, the CMA’s investigation proposes designating Apple and Google with “strategic market status.” This new legal power, introduced last year, allows the regulator to demand changes from firms deemed to hold excessive market power.

CMA Chief Executive Sarah Cardell emphasized that these proposals aim to foster competition, empower UK app developers to innovate and enhance consumer choice. Concerns raised by the CMA include the prominence of the tech giants’ own apps over rivals, opaque and inconsistent app review processes and high commissions on in-app purchases. The regulator also highlighted restrictions on developers “steering” users to alternative payment methods outside of the app stores.

Both Apple and Google have voiced strong opposition to the CMA’s provisional findings. An Apple spokesperson expressed concerns that the proposed rules could undermine user privacy and security, hinder innovation, and force them to relinquish technology to competitors.

Google’s Senior Director of Competition, Oliver Bethell, called the decision “disappointing and unwarranted,” emphasizing that Android’s open-source nature already promotes choice, security, and innovation.

The companies have one month to present their cases to the CMA before a final decision is made in October. If finalized, the ruling could compel Apple and Google to alter their services to promote greater competition and offer more choices to consumers, potentially mirroring regulatory actions seen in the EU and US.

This move underscores a growing global trend among regulators to address the market dominance of major tech platforms.