The Competition and Markets Authority (CMA) has launched an official investigation into the UK cloud gaming and mobile browser markets amid competition concerns.

The investigation follows a year-long probe into Apple and Google’s market power in mobile browsers and Apple’s dominance in the cloud gaming space.

Published in June, the preliminary investigation found that Apple and Google maintain an “effective duopoly” on mobile ecosystems used by millions of Brits.

The regulator warned that the pair’s dominant standing in the space allows them to “exercise a stranglehold” over operating systems, app stores and web browsers used on mobile devices.

At present, 97% of all mobile web browsing in the UK occurs on browsers powered by either Apple or Google’s browser engines.

Apple, for example, bans alternatives to its own browser engine on mobile devices. As such, restrictions on these engines could have a major impact on user experience and inhibit market innovation.

Similarly, there are currently more than 800,000 users of cloud gaming services in the UK, but it is believed that restrictions on their distribution on mobile devices could also hamper growth and negatively impact gamers across the country.

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Sarah Cardell, interim Chief Executive of the CMA, said: “We want to make sure that UK consumers get the best new mobile data services, and that UK developers can invest in innovative new apps.

“Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google.”

Cardell added that the introduction of the Digital Markets regime will enable the regulator to address issues surrounding market dominance.

Industry engagement

The launch of the investigation follows a consultation with industry stakeholders which revealed “substantial support” for a probe into the way that Apple and Google dominate the mobile browser market.

The CMA revealed that a significant number of responses came from browser vendors, web developers, and cloud gaming service providers – many of whom claimed that current market conditions are harming their businesses, holding back innovation, and adding unnecessary costs.

Notably, web developers complained that Apple’s restrictions are a source of frustration as they are regularly forced to deal with “bugs and glitches” when building web pages.

This has prompted developers to create ‘bespoke mobile’ apps when a website might otherwise be sufficient, adding significant costs.

While Apple and Google both argue that such restrictions are needed to protect users, the CMA believes these policies “limit choice and may make it more difficult to bring innovative new apps to the hands of UK consumers.”

Sarah Cardell said the investigation will gauge industry concerns and consider whether new rules are needed to drive better outcomes.

This could force the CMA to impose restrictions on Google or Apple and demand changes to company behaviour in the marketplace.

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