Introduction to the Investigations

In a significant move to regulate the digital landscape, the UK's Competition and Markets Authority (CMA) has launched investigations into the mobile ecosystems of tech giants Apple and Google. These probes aim to determine whether these companies hold "strategic market status," which could lead to mandated changes in their business practices to enhance competition and protect consumers. The investigations are part of the new Digital Markets, Competition and Consumers Act, which came into effect at the start of 2025, empowering the CMA to tackle digital market abuses more effectively.

Background on the Investigations

The CMA's decision to investigate Apple and Google's mobile ecosystems marks a crucial step in addressing concerns over their dominance in the digital market. The investigations will focus on several key areas:

• Operating Systems and App Stores: The CMA will examine how Apple's iOS and Google's Android operating systems, along with their respective app stores (App Store and Google Play), impact competition. This includes assessing whether these platforms favor their own apps and services over those of competitors.
• Mobile Browsers: The investigation will also look into the practices surrounding mobile browsers. For instance, Apple's requirement for other browsers on iOS to use its WebKit engine has been criticized for limiting innovation and competition among browsers.
• Exploitative Conduct: The watchdog will investigate whether Apple and Google impose unfair terms on app developers, hindering their ability to compete effectively.

Impact on Competition and Innovation

The dominance of Apple and Google in the mobile ecosystem has raised concerns about stifling competition and innovation. The CMA's findings could have significant implications for the tech industry:

• Barriers to Entry: Smaller competitors often face barriers when trying to enter or expand within these ecosystems. The investigations will assess these barriers and how they affect competition.
• Innovation: By potentially limiting the ability of other companies to innovate, Apple and Google's practices may hinder the development of new technologies and services.

Recent Developments and Concerns

A recent UK competition probe into mobile browsers concluded that the Apple-Google duopoly is "anti-innovation," highlighting how their policies limit the development of new browser features and restrict economic growth. This report noted that Apple's policies, such as mandating the use of WebKit for other browsers on iOS, crimp competition and hinder the development of progressive web apps (PWAs).

Key Concerns Highlighted by the Probe:

• Revenue Sharing: Google pays Apple a significant share of search ad revenue from Safari and Chrome on iOS, which reduces financial incentives for Google to compete with Apple in the browser space.
• Choice Architecture: The probe identified issues with how choices are presented to users, making it difficult for them to opt for rival services.

Potential Outcomes and Remedies

If the investigations conclude that Apple and Google have strategic market status, the CMA could impose conduct requirements to address competition concerns. Potential remedies include:

• Opening Access: Requiring Apple and Google to provide other apps with access to key device functions.
• App Store Changes: Making it easier for users to download apps outside of the official app stores or pay for in-app content from rival services.
• Browser Choice: Regulating how browser choices are presented to users, potentially through more frequent default browser prompts.

Conclusion

The UK's move to scrutinize Apple and Google's mobile ecosystems reflects a broader trend of increased regulatory oversight of Big Tech companies. As these investigations unfold, they will likely have significant implications for the future of digital competition and innovation in the UK and beyond.