The UK Competition Authority is considering launching an investigation into Apple and Google’s dominance in the mobile browser market after finding that technology companies have a “suffocating grip” in a number of areas, including app stores.
The Competition and Markets Authority (CMA) said action was needed, saying that without intervention both companies were likely to tighten control over the sector, further curbing competitors and discouraging innovators.
Andrea Cosselli, CMA’s chief executive, said the dominance of the two companies was holding back the UK’s technology sector and limiting consumer choice.
“When it comes to how people use mobile phones, Apple and Google have all the maps,” he said. “As good as many of their services and products are, their strong grip on mobile ecosystems allows them to exclude competitors by holding back the UK technology sector and limiting choice.”
The CMA said it was advising the launch of a market investigation into the market power of Apple and Google in mobile browsers after a one-year study of the company’s mobile ecosystems, which it released on Friday.
It says the study found that Apple and Google have an “effective duopoly” over mobile ecosystems, giving them suffocating power over areas including operating systems, app stores and mobile web browsers.
The CMA said smartphones typically have Google Chrome pre-installed or Apple’s Safari as their default browsers, with a combined market share of about 90% in the UK.
“Without intervention, both companies are likely to maintain and even strengthen their control over the sector, further restricting competition and limiting incentives for innovators,” the supervisor said.
He also accused Apple of blocking the emergence of cloud games – where video games are streamed rather than downloaded – in its app store, and said he would also consult to launch an investigation into this.
The CMA added that it is also taking enforcement action against Google over payment practices in the app store. The organization said it was launching an investigation into how apps access Google’s Play Store, focusing on how users can make in-app payments for certain digital products.
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In a statement, Apple said it believed in “thriving and competitive markets” and disagreed with a number of conclusions in the report that accompanies the CMA statement.
It added: “We will continue to engage constructively with the Competition and Markets Authority to explain how our approach promotes competition and choice, while ensuring that consumer privacy and security are always protected.
Google said the phones supported by the Android operating system and the Google Play app store offer consumer choice and help developers start a global business.
It adds: “Android phones offer people and businesses more choice than any other mobile platform. Google Play has been the starting point for millions of applications, helping developers create global businesses that support a quarter of a million jobs in the UK alone.… We will review the report and continue to work with the CMA. ”
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