The CMA’s initial SMS investigation seeks to determine whether Apple and Google should be subject to Strategic Market Status (SMS) designations, allowing the watchdog to impose “pro-competition interventions” to curb potentially dominant market positions.
The pair are being investigated over their dominance in the mobile market, specifically operating systems, native app distribution, and mobile browsers, and their impact on businesses developing services to run on their devices.
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The CMA investigation contends that “virtually all mobile devices” sold in the UK come pre-installed with either Apple’s iOS or Google’s Android operating systems, and apps.
By forcing users to use the respective services, the competition watchdog argues Apple and Google can “exert considerable influence over much of the content, services and technological development provided on a mobile device”.
The CMA will probe whether Apple and Google are imposing unfair barriers that could prevent competitors from offering rival products and services on their platforms.
Also subject to investigation is whether the tech giants are subjecting app developers to unfair terms and conditions to have their apps on Apple’s and Google’s app stores.
Sarah Cardell, the chief executive of the CMA, 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.”
The CMA now has nine months to carry out its SMS investigation, ending October 22, with the watchdog set to engage with device manufacturers, software developers, user groups, and the at-issue companies.
This is the second SMS probe into Google, with the CMA assessing Google’s position in the search and search advertising services markets and its impact on consumers, news publishers, and rival search engines.
Stakeholders have until February 12 to submit comments for the mobile-centric investigation.
The CMA’s probe into Google and Apple comes as chair Marcus Bokkerink was replaced by the former head of Amazon UK Doug Gurr — an ousting reportedly ordered by the Chancellor, Rachel Reeves.
Reports suggest the government was unhappy with Bokkerink’s instance on the CMA being incredibly thorough in its investigations, contending it was slowing major deals — like the Vodafone/Three merger — that could improve the country’s growth.
“I look forward to working with the strong leadership team to help deliver business investment and economic growth in a framework of effective competition and consumer protection,” Gurr said upon appointment.
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