UK competition watchdog to probe Apple, Google's dominance of mobile phone ecosystems

The regulator says it will examine whether alleged duopoly is stifling competition in the market

The Competition and Markets Authority (CMA) announced on Tuesday that it was launching a market study into mobile ecosystems of Google and Apple over allegations that their duopoly is harming users and stifling competition in the market.

The regulator will examine whether the dominance of the two firms in supplying operating systems (Android and iOS), app stores (Play Store and App Store) and web browsers (Chrome and Safari), is resulting in customers losing out across a wide range of areas.

The new investigation will be broader than the probes that the CMA has already launched into Google's Privacy Sandbox and Apple's App Store, the watchdog said.

In the UK, Google's Android OS and Apple's iOS are installed on more than 99 per cent of all mobile phones in use.

CMA chief executive Andrea Coscelli noted that the two firms control the "major gateways" used by millions of people in the UK to download apps or browse the web on their smartphones.

The regulator will look closely whether the virtual duopoly is leading to higher prices for devices, apps or services due to the pair's control over advertising, and it will also examine any impact on app developers who rely on Google and Apple to advertise their products.

The CMA's ongoing work into big tech firms has already revealed some "worrying trends" that will harm businesses and consumers if "they go unchecked," according to Coscelli.

In a statement to The Guardian, a Google spokesperson said: "Android 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's efforts to understand the details and differences between platforms before designing new rules."

The new study is part of the CMA's broader plan, which includes setting up a new pro-competition regulatory regime for online markets through the new Digital Markets Unit (DMU). The government established the unit in April with the aim of promoting greater competition and innovation in digital markets and to protect consumers and businesses from unfair practices.

The competition regulator is currently also investigating Google's Privacy Sandbox proposals and Apple's App Store over competition concerns.

The CMA said in March that it was probing whether Apple's terms and conditions for app developers are forcing users to spend more money for apps and add-ons. Developers who offer 'in-app' features and add-ons are required to use Apple's payment system, and the tech giant also charges a commission of up to 30 per cent to developers on purchases made by iPhone and iPad users on all their apps.

Last week, the CMA also said that it would work with Google on the company's plan to remove third-party browser cookies and other functionalities from its Chrome browser. The announcement came after Google's made a set of proposals to end antitrust investigation by the CMA.

The company said it would apply the proposed commitments globally if they are accepted by the British regulator.