CMA to investigate Apple, Google over duopoly in mobile markets

The Competition and Markets Authority said on Friday that it was planning to review the market dominance of Apple and Google’s mobile browsers, and Apple’s restrictions on cloud gaming through its App Stores.

The competition watchdog also said it was taking enforcement action against Google over its app store payment practices.

Following a year-long study of the companies’ mobile ecosystems, the CMA found they have an effective duopoly that allows them to exercise a stranglehold over these markets, which include operating systems, app stores and web browsers on mobile devices.

"Without interventions, both companies are likely to maintain, and even strengthen, their grip over the sector, further restricting competition and limiting incentives for innovators," it said.

The CMA said it had looked at where it can take immediate targeted action to tackle the problems using its current powers.

Chief executive Andrea Coscelli said: "When it comes to how people use mobile phones, Apple and Google hold all the cards. As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice.

"We all rely on browsers to use the internet on our phones, and the engines that make them work have a huge bearing on what we can see and do. Right now, choice in this space is severely limited and that has real impacts - preventing innovation and reducing competition from web apps. We need to give innovative tech firms, many of which are ambitious start-ups, a fair chance to compete.

"We have always been clear that we will maximise the use of our current tools while we await legislation for the new digital regime. Today’s announcements - alongside the eight cases currently open against major players in the tech industry, ranging from tackling fake reviews to addressing problems in online advertising - are proof of that in action."