CMA calls for investigation into Apple and Google's mobile market dominance

The UK's Competition and Markets Authority has called for a formal investigation into Apple and Google's dominance of the mobile market.

Last Friday, the CMA's independent inquiry group published preliminary findings into Apple and Google's mobile ecosystems. It suggested that the tech firms have "an effective duopoly on mobile ecosystems, including operating systems, app stores, and web browsers."

Examples of this included a revenue-sharing agreement between both companies that "reduces their financial incentive to compete in mobile browsers on iOS," in addition to both firms allegedly "manipulat[ing] choices to make their browsers the clearest or easiest option."

The group also spoke with small UK developers who said they would like to use third-party app stores, but are being prevented by the technology not being able to "fully take off in iOS devices."

The preliminary investigation also looked into cloud gaming. However, as Apple made changes to allow cloud gaming on its app store, this part of the investigation was dropped in August 2024.

As a result of its findings, the group has recommended that a formal investigation should be conducted into Apple and Google under new Digital Markets Act rules that come into effect next year.

"Markets work best when rival businesses are able to develop and bring innovative options to consumers," said chair of the CMA's independent inquiry 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."

In response to the findings, Apple told CNBC that any such interventions "would undermine user privacy and hinder [its] ability to make the kind of technology that sets Apple apart."

It continued: "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."

The CMA announced it intended to investigate Apple and Google for their influence on the mobile market in June 2022.

The preliminary investigation began in November 2022, which also included a Phase 2 investigation into Apple's cloud gaming restrictions.

Last May, the investigation was put on hold after both tech firms challenged the CMA before the Competition Appeal Tribunal. The investigation resumed in December 2023.