The watchdog will assess if the firms’ control over mobile ecosystems is hampering competition across a variety of digital markets
Apple and Google mobile ecosystems to be scrutinised by the UK CMA over anti-competition concerns. (Credit: Jan Vašek from Pixabay)
The UK Competition and Markets Authority (CMA) has started a market study into the mobile ecosystems of Apple and Google to understand whether their market power is impacting users and other businesses.
The regulator said that there are concerns that the effective duopoly the firms hold over the supply of the iOS and Android operating systems, App Store and Play Store, and Safari and Chrome web browsers could harm consumers across a broad range of areas.
The CMA defines mobile ecosystems as a collection of gateways using which consumers can access a range of products, services, and content like music, video streaming, TV, fitness tracking, banking, and shopping. The products also include smartwatches, smart speakers, home security and lighting, and other technology and devices.
Also, the regulator will check if Apple and Google’s control over mobile ecosystems is hindering competition across a variety of digital markets.
The British competition watchdog said that this could result in reduced innovation across the sector with consumers shelling out higher prices for apps and devices, or for other services and goods because of higher advertising prices.
CMA chief executive Andrea Coscelli said: “Apple and Google control the major gateways through which people download apps or browse the web on their mobiles – whether they want to shop, play games, stream music or watch TV. We’re looking into whether this could be creating problems for consumers and the businesses that want to reach people through their phones.
“Our ongoing work into big tech has already uncovered some worrying trends and we know consumers and businesses could be harmed if they go unchecked.”
CMA’s study will also scrutinise any effects of the market power that the two companies have over other businesses like app developers, which depend on them to market their products to customers through their phones.
The study will be part of a larger programme taken up by CMA, which includes setting up a new pro-competition regulatory regime for digital markets via the recently established Digital Markets Unit.
The watchdog has 12 months to wrap up the study.
Earlier this year, the CMA began an initial investigation into Apple whether the latter is abusing its dominant position in the distribution of apps on the company’s devices in the UK. The investigation will go on till September 2021.