By Sagar V. Mankar 
The UK’s Competition and Markets Authority (CMA) is currently investigating Apple and Google’s dominance in mobile ecosystems. Yes, the same authority that put the Microsoft-Activision-Blizzard deal on hold for more than a year. As reported by CNBC, this time, CMA is considering whether the two tech giants hold Strategic Market Status (SMS) in the UK, which would subject them to stricter regulations.
The independent inquiry group leading the investigation has raised concerns about Apple and Google’s practices, particularly in mobile browsers and app distribution. The group claims that Apple’s App Store policies limit competition and hinder smaller developers from introducing innovative features. Although Apple has recently allowed cloud gaming apps on its platform, resolving some concerns, the inquiry group believes broader issues remain.
A key focus of the investigation is the revenue-sharing agreement between Apple and Google, which makes Google the default search engine on iPhones. This arrangement, according to the inquiry group, reduces the financial motivation for competition in mobile browser markets on iOS. Chair of the CMA’s independent inquiry group, Margot Daly, highlighted that the lack of competition is stifling innovation, stating, “Markets work best when rival businesses are able to develop and bring innovative options to consumers. Competition between different mobile browsers is not working well, and this is holding back innovation in the UK.”
Under the Digital Markets, Competition and Consumers Act (DMCC), the CMA has the power to enforce significant changes on companies holding SMS status. These changes may include ending preferential treatment of their own services, ensuring better interoperability between platforms, and banning anti-competitive practices. The CMA is now gathering feedback from stakeholders, with a deadline set for December 13, 2024. A final decision is expected by March 2025.
Apple has pushed back against the CMA’s findings, arguing that regulatory interventions could undermine user privacy and hinder their ability to deliver distinctive technologies. In a statement to CNBC, an Apple spokesperson said, “Apple believes in thriving and dynamic markets where innovation can flourish. We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users.”
Google, on the other hand, has yet to officially comment on the CMA’s findings.
The investigation originally included concerns about restrictions on cloud gaming services through Apple’s App Store. However, this issue has been set aside after Apple began allowing cloud gaming apps on its platform.
Sources: CNBC, CMA Reports