The U.K.’s Competition and Markets Authority (CMA) is looking into the mobile ecosystems of Apple and Google to see if they need to follow a new law that regulates digital competition.
On Thursday, the CMA announced that it will examine how these companies dominate areas such as mobile phone operating systems, app stores, and web browsers. The goal is to understand how their presence affects smartphone users and developers who rely on these platforms to earn income. If the CMA finds that either company has “strategic market status,” it could enforce specific rules under the new legislation.
This investigation marks the second phase of scrutiny under the Digital Markets, Competition and Consumers Act, a recently enacted law in the U.K. aimed at reducing the excessive market control of major tech firms. The law prohibits tech giants that are identified as having strategic market status from prioritizing their own offerings over those of competitors.
The CMA began enforcing the new regulations earlier this year, starting with an inquiry into Google’s search services on January 14.
An Apple representative stated that the company faces competition in every market it operates in and that its priority lies in maintaining customer trust. They expressed readiness to cooperate with the CMA as the investigation advances.
On the other hand, Google also pledged to collaborate with the CMA, highlighting its commitment to supporting users, businesses, and the broader mobile ecosystem in the U.K.
According to the CMA, approximately 15,000 businesses in the U.K. develop apps for mobile devices, collectively generating about £28 billion (around $34.5 billion) in revenue.
Sarah Cardell, the chief executive of the CMA, explained that the operating systems, apps, and browsers on our devices serve as essential gateways to the digital world, facilitating communication, shopping, and access to creative content.
The regulator aims to better understand the extent of competition between Apple and Google in the mobile market. It will also examine what challenges smaller businesses face in launching competing products and whether the dominant companies are imposing unfair terms on developers who sell through their app stores.
Furthermore, the CMA will look into whether the companies are using design strategies to steer users towards their own applications, such as the Safari and Chrome browsers, instead of letting them choose other options.
In addition to these investigations, the CMA is considering the possibility of imposing specific conduct requirements on Apple and Google under the new law. This could involve mandating that the companies allow app developers access to crucial features or enable users to download apps from sources other than their official app stores.
The CMA has set a deadline of October 22 for completing both investigations and invites feedback from industry stakeholders until February 12.
These inquiries by the CMA come at a time when the European Commission is also nearing the conclusion of its investigations into Apple, Google, and Meta under its own competition regulations called the Digital Markets Act.
