Over the past couple of years, the UK’s Competition and Markets Authority (CMA) has been investigating whether Apple and Google have stymied growth and competition within the mobile market sector. Last week saw the preliminary findings of that investigation published, which concluded that both companies have “an effective duopoly on mobile ecosystems, including operating systems, app stores, and web browsers.”
The CMA’s investigation argues that a revenue sharing agreement between both companies reduces any financial incentive for Apple and Google to compete in mobile browsers on iOS, and accuses the two companies of manipulating choices to make their browsers the better option. The report also cites statements from small UK developers who allege that they’re unable to use alternative ways to provide apps to mobile users without downloading apps through an app store because of Apple’s App Store’s wider exposure.
The CMA is calling for a formal investigation into Apple and Google to see if they are breaking new Digital Markets Act competition rules that will come into effect in the country later this year. The regulatory body will take comments about its initial findings until December 13th and expects to make a final decision sometime in March 2025.
“Markets work best when rival businesses are able to develop and bring innovative options to consumers,” says CMA inquiry group chair Margot Daly. “Through our investigation, we have provisionally found that competition between different mobile browsers is not working well and this is holding back innovation in the UK.”
Readers will recall that this is similar to the long-form legal fight between Epic Games and Apple, which ended with a ruling primarily in Apple’s favor except for an injunction on the company’s blocking of third-party payment options. Apple attempted to overrule the order through the appeals process but failed on all legal levels.
