UK: CMA to scrutinise Apple and Google mobile ecosystems

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The CMA has launched a market study into Apple’s and Google’s mobile ecosystems over concerns they have market power which is harming users and other businesses.

The Competition and Markets Authority (CMA) is taking a closer look at whether the firms’ effective duopoly over the supply of operating systems (iOS and Android), app stores (App Store and Play Store), and web browsers (Safari and Chrome), could be resulting in consumers losing out across a wide range of areas.

‘Mobile ecosystems’ refers to this collection of gateways through which consumers can access a variety of products, content and services, such as music, TV and video streaming, as well as fitness tracking, shopping and banking. These products also include other technology and devices such as smart speakers, smart watches, home security and lighting (which mobiles can connect to and control).

The CMA is looking into whether the two firms’ control over mobile ecosystems is stifling competition across a range of digital markets. The CMA is concerned this could lead to reduced innovation across the sector and consumers paying higher prices for devices and apps, or for other goods and services due to higher advertising prices.

The study will also examine any effects of the firms’ market power over other businesses – such as app developers – which rely on Apple or Google to market their products to customers via their phones.