The UK Competition and Markets Authority has taken more decided aim at the mobile platform ecosystem, designating Google and Apple with ‘strategic market status’ as it publishes roadmaps to improve competition in the mobile sphere.
The CMA found through its ongoing investigations that Apple and Google’s mobile platforms hold an effective duopoly, with around 90-100% of UK mobile-devices running on Apple or Google’s mobile platform.
In its investigations, the CMA heard of concerns from UK business and consumers surrounding this market control.
The UK’s app developer community is the largest in Europe, generating an estimated 1.5% of the UK’s GDP, and supports around 400,000 jobs. While Apple and Google control and enable many of these app developers, their hold on the market can lead to less competition and more strain than benefits on developers.
Developers told the CMA that Apple and Google’s duopoly often leads to inconsistent and unpredictable app review processes, leading to uncertainty and in some cases, failed app launches. This is only increased as inconsistent app store rankings often benefit the firms’ own apps over independent competitors.
Developers are also hit by an up to 30% commission on some in-app purchases – a charge from the Apple App Store that is currently being challenged as anti-competitive it the EU.
Further, developers noted restrictions on access to features and functionality which may impede their innovation, benefiting the controlling firms. In conjunction, default settings, pre-instillation, and other aspects of ‘choice architecture’ often favour firms’ own services, limiting genuine competition from outsiders.
“It is essential the digital economy works well to power the success of businesses across the UK economy,” the CMA said.
“More competition and choice will unlock opportunities for UK businesses to invest, innovate and grow, as well as allowing UK consumers to benefit from the latest innovations, high quality experiences and more choice.”
The CMA has published new roadmaps to unlock better digital markets competition, outlining how Apple and Google and others in the market can offer better consumer choice.
This will include setting fairer review and ranking processes in App Stores, and allowing users to be steered out of app stores for purchases.
Further, the CMA aims to address interoperability issues with Apple, with direct emphasis on digital wallets and connected devices.
Recommended reading
- CMA Investigates Apple and Google Mobile Ecosystems
- Apple to Face First Digital Markets Act Fine
- European Commission Accuses Apple of Breaching Digital Markets Act
Overarchingly, the CMA’s roadmap will try to ensure that consumers have genuine choice in the services they access on their devices. The CMA will also seek ways in which AI will proliferate in the sector to ensure that this is also deployed on a level playing field.
“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,” Sarah Cardell, Chief Executive of the CMA, said.
“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. ”
“Time is of the essence: as competition agencies and courts globally take action in these markets, it’s essential the UK doesn’t fall behind.”





