Apple and Google hold an “effective duopoly” with their mobile platforms and may be forced to open them up to more competition, a UK watchdog has said.
The Competition and Markets Authority (CMA) has announced proposals to give the US tech giants “strategic market status” for their mobile platforms, which could enforce changes that will benefit consumers, businesses and app developers.
Under new rules which came into force at the start of the year, firms designated with the status can have conduct requirements imposed on them which boost competition for UK businesses and choice for consumers.
The regulator has outlined possible actions for each firm to improve competition across app stores, so-called interoperability, consumer choice and artificial intelligence (AI) services.
An earlier market study by the CMA published in 2021 found that Apple and Google dominated mobile ecosystems across operating systems, app stores and web browsers.
It said this meant the two companies were in a position to effectively set the rules on how mobile browsers worked on their devices.
Around 90% to 100% of UK mobile devices run on Apple or Google’s mobile platforms, according to the CMA.
Sarah Cardell, chief executive of the regulator, said: “Apple and Google’s mobile platforms are both critical to the UK economy – playing an important role in all our lives, from banking and shopping to entertainment and education.
“But our investigation so far has identified opportunities for more innovation and choice.
“The targeted and proportionate actions we have set out today would enable UK app developers to remain at the forefront of global innovation while ensuring UK consumers receive a world-class experience.”
But she added that action needed to be taken swiftly.
“As competition agencies and courts globally take action in these markets, it’s essential the UK doesn’t fall behind,” she said.