Apple and Google are facing fresh scrutiny in the UK over the dominance of their mobile ecosystems, including their app stores, browsers and operating systems. British regulator the Competition and Markets Authority announced dual investigations into the companies on Thursday, with the potential to demand Apple and Google open up their ecosystems if it was in the best interests of mobile users.
The CMA said it will look into three potential issues: the competition between and within Apple and Google that may prevent competitors from entering the market; the possibility that the companies are leveraging their dominance to favor their own apps and services; and potential “exploitative conduct,” which might force developers to sign up to unfair terms.
In many ways, the CMA could be seen to be following in the footsteps of the European Union’s competition regulator, which has already demanded more openness from Apple when it comes to its mobile operating systems. Much of the focus in Europe has been on fairer terms for developers and making it possible to access alternative app stores, in order to ensure people who use Apple and Android phones have the power to choose. This has been tricky for the companies to navigate, as more openness can introduce more security risks, which Apple in particular is well known for keeping to an absolute minimum.
“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,” said Sarah Cardell, chief executive of the CMA. “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.”
Google issued a response to the probe in a blog post, in which it said it welcomed the opportunity to lay out the benefits of its open-source model for the CMA. “Android has increased choice, reduced prices and democratised access to smartphones and apps,” wrote Oliver Bethell, senior director of competition at Google. “It is the only example of a successful and viable open source mobile operating system that developers and manufacturers can use to build helpful and secure apps and devices.”
Apple didn’t respond to a request for comment.
The CMA is using new powers to probe digital tech companies after the introduction of a new law, the Digital Markets, Competition and Consumers Act, last year. Following the investigations, which it expects to conclude by October, it could demand the companies change the way they operate. Potential requirements could include requiring Apple and Google to open up access to key phone features to other app developers, or make it easier for people to use alternative app stores and pay for in-app content in different ways.
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