The United Kingdom’s Competition and Markets Authority (CMA) has initiated investigations into Apple and Google’s mobile ecosystems to assess their “strategic market status” (SMS). This move aims to determine whether the tech giants’ control over operating systems, app stores, and browsers restricts competition and innovation.
The CMA’s inquiry will focus on several key areas:
- Competition within Mobile Ecosystems: Evaluating the level of competition between and within Apple’s iOS and Google’s Android platforms, and identifying any barriers preventing rivals from offering alternative products and services.
- Leveraging Market Power: Investigating whether Apple and Google use their dominant positions to favor their own applications and services, which often come pre-installed on devices, thereby disadvantaging competitors.
- Potentially Unfair Practices: Assessing if the companies impose unfair terms and conditions on app developers or design user interfaces that limit consumer choice.
Sarah Cardell, Chief Executive of the CMA, emphasized the significance of this investigation, stating, “The operating systems, apps, and browsers installed on our phones and tablet devices act as our gateway into the digital world… More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use.”
This marks the CMA’s second investigation using its expanded powers under the newly introduced Digital Markets, Competition and Consumers Act. The first, launched earlier this January, targets Google’s search engine and advertising practices, focusing on whether the company unfairly leverages its market dominance to restrict competition and harm advertisers and consumers.
In response, both Apple and Google have expressed their willingness to cooperate with the CMA’s investigations. Apple highlighted its commitment to consumer privacy and security, while Google emphasized that its Android operating system offers users and businesses a greater choice compared to other mobile platforms.
This investigation is part of the broader Digital Markets, Competition and Consumers Act, which grants the CMA enhanced powers to regulate digital markets and address potential anti-competitive behaviors. The CMA aims to conclude its assessment by October 22, 2025, and is currently inviting comments from interested parties until February 12, 2025.
If the regulator finds that the companies have SMS in these relevant markets, it could lead to changes in how Apple and Google operate their mobile ecosystems in the UK, potentially impacting app distribution, in-app purchases, and the overall competitive landscape of mobile services. Potential conduct requirements could include, for example, requiring Apple or Google to open up access to key functionality needed by other apps to operate on mobile devices; or making it possible for users to download apps and pay for in-app content more easily outside of Apple’s and Google’s own app stores.
