Apple and Google are facing new scrutiny in the UK over the dominance of their mobile ecosystems, including their app stores, browsers and operating systems. Britain's regulator, the Competition and Markets Authority, announced a dual probe into the companies on Thursday, with the potential to ask Apple and Google to open up their ecosystems if doing so is in the best interests of mobile users.
The CMA said it would consider three potential issues: competition between and within Apple and Google that could prevent competitors from entering the market; the ability for companies to use their dominance to favor their own applications and services; and potentially “exploitative behavior,” which can force developers to sign up on unfair terms.
In many ways, the CMA can be seen to be following in the footsteps of the European Union's competition regulator, which has already demanded more openness from Apple when it comes to its mobile operating systems. Much of the focus in Europe is on fairer conditions for developers and enabling access alternative app storesin order to ensure that people using Apple and Android phones have the power to choose. This has been tricky for companies to navigate as more openness can be introduced more security riskswhich Apple in particular is well known for keeping to an absolute minimum.
“More competitive mobile ecosystems could drive new innovation and new opportunities across a range of services used by millions of people, whether they're app stores, browsers or operating systems,” said Sarah Cardell, CEO of the CMA. “Better competition can also drive growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple and Google platforms.”
Google issued a response to the investigation in blog postin which it said it welcomes the opportunity to showcase the benefits of its open source model for CMA. “Android increased choice, lowered prices and democratized access to smartphones and apps,” wrote Oliver Bethel, senior director of competition at Google. “It is the only example of a successful and viable open source mobile operating system that developers and manufacturers can use to build useful and secure applications and devices.”
Apple did not respond to a request for comment.
The CMA is using new powers to investigate digital technology companies following the introduction of the new law, the Digital Markets, Competition and Consumers Actlast year. After the investigations, which he expects to complete by October, he may ask the companies to change the way they work. Potential demands could include asking Apple and Google to open up access to key phone features to other app developers, or to make it easier for people to use alternative app stores and pay for in-app content in different ways.