The Competition and Markets Authority (CMA) has announced plans to take action against Apple and Google over their dominance of mobile platforms. The watchdog intends to designate both companies as having 'strategic market status', citing an 'effective duopoly' that restricts competition on mobile devices.
The CMA said it would focus initially on issues such as app store fees, which can reach up to 30% for transactions, and restrictions on digital wallets. The regulator aims to ensure a fair and transparent app review process and allow users to steer away from app stores when making purchases.
'Apple and Google's mobile platforms are both critical to the UK economy – playing an important role in all our lives,' said Sarah Cardell, the CMA's chief executive. 'Time is of the essence: as competition agencies and courts globally take action in these markets, it's essential the UK doesn't fall behind.'
However, the CMA has stopped short of requiring major changes such as allowing alternative app stores or payment methods on Apple devices. Critics have accused the watchdog of being too timid: Tom Smith, a competition lawyer, said the CMA was 'ducking' decisions that might attract political heat, while Epic Games CEO Tim Sweeney called the approach 'surprisingly weak'.
The investigation, launched in January, follows concerns that Apple's Safari and Google's Chrome dominate mobile browsing, and that virtually all UK smartphones run on either iOS or Android. The CMA's new chair, Doug Gurr, has faced scrutiny over his appointment from Amazon UK, with critics questioning the regulator's independence.
