The Competition and Markets Authority (CMA) in the United Kingdom is initiating investigations into Apple and Google’s mobile ecosystems. They’ll utilize their “strategic market status” (SMS) role as part of this procedure.
These investigations stem from the newly implemented Digital Markets, Competition and Consumers (DMCC) Act. The law’s new provisions allow the CMA to mark companies that monopolize their markets as having a strategic market status and also suggest potential countermeasures to enhance competition.
CMA unveiled its initial investigation last week, examining Google Search’s extensive market share. It hinted at a subsequent inquiry to be launched in January, which is now revealed to be an overall evaluation of Apple and Google’s dominance in their respective mobile ecosystems, including aspects like browsers, app stores, and operating systems.
Stifling Novelty?
This move by the CMA was quite expected. In August, they announced the suspension of two separate investigations targeting both Apple and Google’s mobile app ecosystems. However, they made it crystal clear this was merely a pause to regroup for a fresh approach to address competition concerns utilizing their new powers.
A study by a CMA-appointed inquiry group revealed that the pact between Google and Apple’s mobile browser policies was “smothering innovation” in the UK. It highlighted Apple’s policy of obliging third-party mobile browsers to employ Apple’s browser engine, WebKit. This limits these browsers’ range of capabilities and restricts their potential for true competition.
The CMA’s new approach includes a close examination of competition or lack thereof within and between Google and Apple’s mobile ecosystems. It will scrutinize whether each company is exploiting their predominant position in operating systems, browsers, or app distribution to propel their own apps and services unfair advantage.
Steps Towards Remediation
CMA’s announcement has now initiated a three-week window for relevant stakeholder inputs into the investigations. The final outcomes are anticipated to be declared by October 22, 2025. If Apple and Google are determined to wield strategic market power, solutions might entail requiring them to offer third-parties more access to help them genuinely compete. Another potential recourse could be the easing of payment procedures outside the existing app store structure.
As the investigation proceeds, Apple committed to “constructive engagement with the CMA”, backed by their belief in encouraging thriving, dynamic markets perfect for nurturing innovation. Google also vows to cooperate with the CMA constructively, citing Android’s open nature as a beacon for choice, affordability, and democratized access to smartphones and apps.
Original source: Read the full article on TechCrunch
