The UK Competition and Markets Authority (CMA) calls for an investigation into Apple and Google's mobile ecosystems.
As reported by CNBC, the CMA may use its powers under the new Digital Markets, Competition and Consumer Act (DMCC) to examine possible anti-competitive behavior by the two companies given their dominance of the UK mobile markets.
However, it proposes that no further action be taken on cloud gaming as “major concerns have been addressed.”
Following a preliminary investigation, an independent research group recommended a review of the UK mobile ecosystem and assess whether the two megacorporations have strategic market status (SMS), which potentially gives them a preferential position in the market.
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The independent research group alleged that Apple's App Store rules “restrict other competitors from offering new and innovative features that could benefit consumers” and make it difficult for smaller developers to operate without having to use the App Store.
The investigation also looked at mobile cloud gaming, but said that as Apple made changes to allow cloud gaming apps to be sold through the App Store during the course of the investigation, “the group tentatively concluded that they did not “There is a need for intervention by the CMA in mobile cloud gaming.”
The group also alleged that Google and Apple have a revenue-sharing agreement to make Google the default search engine on iPhone, which “significantly reduces their financial incentives to compete in mobile browsers on iOS.”
“Markets work best when rival companies are able to develop and offer innovative options to consumers,” said Margot Daly, chair of the CMA's independent research group. “Competition between different mobile browsers is not working well and this is holding back innovation in the UK.”
Apple disputes the claims and said interventions made under the DMCC would “undermine user privacy and hinder our ability to create the kind of technology that sets Apple apart.”
“Apple believes in thriving, dynamic markets where innovation can flourish,” Apple said in a statement to CNBC. “We face competition in all segments and jurisdictions where we operate, and our focus is always on the trust of our users.”
The CMA expects to make a final decision in March 2025. Google, Apple and other interested parties have until December 13 to respond to the investigation group's interim report. The DMCC will come into effect in January 2025.
The CMA closed its investigation into Apple's in-app payment system in August “for reasons of administrative priority.”
At the time, the CMA stated that it no longer considered the investigation a priority, but stressed that closing the case “does not constitute a decision of the CMA.”
Apple will reportedly continue its slow and steady expansion into gaming with the launch of a new gaming-focused iOS app that will bring together elements like a store, recommendations, achievements, and social features in one place.