The UK’s competition watchdog has launched investigations into the impact of Apple and Google’s mobile platforms on consumers and businesses, days after the government faced criticism for appointing a former technology executive as the new head of the organisation.
The Competition and Markets Authority (CMA) will investigate the technology companies’ mobile operating systems, app stores and browsers to determine whether the two companies need tailored guidance to regulate their behaviour.
The move follows the government’s denials that it is “in the pocket of big tech” following the appointment of Doug Gore, Amazon’s former UK country director, to head the CMA.
The CMA said it would look into the impact of Google and Apple’s mobile platforms on consumers and businesses, including app developers.
The watchdog said almost all smartphones sold in the UK were pre-installed with Apple’s iOS or Google’s Android, while their app stores and browsers had advantageous positions on their platforms compared to third-party products and services.
The CMA will determine whether Apple and Google should be classified as having a “strategic market status” under a new regulatory regime introduced under the Digital Markets, Competition and Consumer Act 2024. If they are deemed to have this status, the watchdog could impose a “” requirements” or enforce changes such as making it easier for users to download apps outside of the Apple and Google App Stores.
Sarah Cardell, chief executive of the CMA, said the two companies’ mobile platforms were consumers’ gateways “into the digital world”.
“More competitive mobile ecosystems can foster new innovations and new opportunities across a range of services used by millions of people, whether they are app stores, browsers or operating systems,” she said. “Better competition can boost growth here in the UK, with companies able to offer new and innovative types of products and services on the Apple and Google platforms.”
The Capital Markets Authority said it will complete its investigations by October 22. Last week, it opened its first investigation under new legislation into Google and the impact of the company’s search and advertising practices on consumers, news publishers, businesses and competing search engines.
Alex Hafner, a partner at law firm Fladgate in the UK, said the move by Apple and Google was “completely expected” but occurred against the backdrop of the government’s policy of seeking strong economic growth.
“What is most interesting is how this fits with the very clear guidance that the CMA is getting from central government to ensure that regulation is applied consistently with its pro-growth agenda,” he said.
Business Minister Justin Madders said on Wednesday that the government was not being taken over by Big Tech companies after Gore’s appointment. Speaking to Parliament, Madders said: “Competition is vital to driving investment and growth, and the CMA’s operational independence will remain.”
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The GMB union criticized Gore’s appointment, calling it a “slap in the face to Labour”, while the Ethical Consumer Association, a campaigning consumer co-operative, said it was “like something out of Donald Trump’s playbook”.
Oliver Bethel, Google’s senior director of competition, said Android is the “only example” of a successful mobile operating system that is open source, meaning it is freely available to developers.
“We favor a way forward that avoids stifling choice and opportunity for UK consumers and businesses alike, and without risking the UK’s growth prospects,” he said.
Apple said its App Store would ultimately support hundreds of thousands of jobs in the UK, and that the company would “engage constructively” with the CMA. An Apple spokesperson said: “We face competition in every sector and jurisdiction where we operate, and our focus is always the trust of our users.”