CMA says it is looking into whether alleged duopoly is harmful to consumers and businesses<\/p>\n
Last modified on Tue 15 Jun 2021 12.17 EDT<\/p>\n
Britain\u2019s competition regulator is investigating Apple and Google over allegations the two companies have a harmful duopoly in mobile platforms.<\/p>\n
Between them, Apple\u2019s iOS and Google\u2019s Android are installed on 99.45% of all mobile phones in use in the UK. The two companies also have effective duopolies in app stores (Apple\u2019s App Store and Google\u2019s Play Store) and mobile web browsers (Apple\u2019s Safari and Google\u2019s Chrome), according to the Competition and Markets Authority (CMA).<\/p>\n<\/p>\n
The UK competition watchdog has announced a year-long study, already under way, into whether the control exerted by the two companies is stifling competition.<\/p>\n
Andrea Coscelli, the CMA\u2019s chief executive, said: \u201cApple and Google control the major gateways through which people download apps or browse the web on their mobiles \u2013 whether they want to shop, play games, stream music or watch TV. We\u2019re looking into whether this could be creating problems for consumers and the businesses that want to reach people through their phones.<\/p>\n
\u201cOur ongoing work into big tech has already uncovered some worrying trends and we know consumers and businesses could be harmed if they go unchecked.\u201d<\/p>\n
The CMA is looking at whether the duopoly is leading to price increases, for instance for devices and apps, or for broader goods and services, due to higher advertising prices. The regulator will also examine \u201cany effects of the firms\u2019 market power over other businesses \u2013 such as app developers \u2013 which rely on Apple or Google to market their products to customers via their phones\u201d.<\/p>\n
Both companies have faced growing pressure around the world to justify the power they exert over the mobile ecosystem. Central to the concerns are the limitations each company places on its mobile app store: developers are required to use bundled payment providers, and pay a cut of up to 30% to the platform holder.<\/p>\n
Apple, in particular, has faced criticism for appending burdensome requirements, such as banning developers from telling users how to sign up for subscriptions, to its App Store rules, and is the subject of an EU competition commission investigation into how it runs its store.<\/p>\n
A Google spokesperson said: \u201cAndroid provides people with more choice than any other mobile platform in deciding which apps they use, and enables thousands of developers and manufacturers to build successful businesses. We welcome the CMA\u2019s efforts to understand the details and differences between platforms before designing new rules.\u201d Apple declined to comment.<\/p>\n