The CMA is calling for an investigation into Apple and Google’s dominance of the UK mobile market
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The CMA is calling for an investigation into Apple and Google’s dominance of the UK mobile market

The UK’s Competition and Markets Authority (CMA) is calling for an investigation into Apple and Google’s mobile ecosystem.

As reported by CNBCcould the CMA use its powers under the new Digital Markets, Competition and Consumers Act (DMCC) to investigate possible anti-competitive behavior by the two companies given their dominance of the UK’s mobile markets.

However, it suggests that no further action be taken on cloud gaming given that “primary concerns have been addressed”.

After a preliminary investigationan independent investigative group has recommended a review of the UK mobile ecosystem, assessing whether the two mega-corporations have Strategic Market Status (SMS), potentially giving them a dominant position in the market.

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The independent investigative group claimed that Apple’s App Store rules “limit other competitors from being able to deliver new, innovative features that can benefit consumers” and make it difficult for smaller developers to operate without having to use the App Store.

The inquiry 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 investigation, “the group has provisionally concluded that there is no need for CMA intervention 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 the iPhone, which “significantly reduces their financial incentive to compete in mobile browsers on iOS”.

“Markets work best when competing companies can develop and offer innovative options to consumers,” said Margot Daly, Chair of the CMA’s Independent Investigations Group. “Competition between different mobile browsers is not working well and this is holding back innovation in the UK.”

Apple disputes the claims, saying actions taken 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 and dynamic markets where innovation can flourish,” Apple said in a statement to CNBC. “We face competition in every segment and jurisdiction in which 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 team’s preliminary report. The DMCC will enter into force in January 2025.

The CMA concluded its investigation into Apple’s in-app payment system already in August “due to administrative priority”.

At the time, the CMA said it no longer considered the investigation a priority but stressed that the closure of the case “does not constitute a decision by the CMA”.

Apple is reportedly set to continue its slow and steady expansion in gaming with the launch of a new game-focused iOS app that brings together things like a store, recommendations, achievements and social features in one place.