Apple and Google have too much market share in operating systems, app stores and browsers in the UK. That implies the national market authority following a new investigation.
“An iron grip on mobile devices,” says the Competition and Markets Authority (CMA) about the position of the tech giants. Earlier this year, the authority launched an investigation into the influence of Apple and Google on the British market for operating systems, app stores and browsers. The result underlines that the organizations dominate.
Every smartphone runs on iOS or Android. 95 percent of all smartphone apps were downloaded from the App Store or Play Store. 90 percent of browser traffic went through Safari and Chrome.
“Anyone who buys a mobile device ends up in the Apple or Google ecosystem. Only they determine how online content is offered,” said a spokesperson for the CMA. The authority finds it worrying. UK residents would be at risk of unfairly high prices for phones and apps. There is no room for innovations from other providers.
While the research has an impact on UK policy makers and government officials, its direct impact is limited. The CMA has the right to impose sanctions on companies and individuals who violate competition laws. Apple and Google are not in violation. So the CMA hopes to broaden the criteria for violation.
The future
The perfect remedy, the authority said, is a bill currently being considered by the British government. If the government approves this bill, the CMA will receive the opportunity to place certain technology companies in a new legal category. The category makes it possible to frame certain business activities with new laws. The CMA is crystal clear about its intention to bring Apple and Google into the category. From there, his current advice can be expressed in regulations.
Apple and Google could be required to facilitate the transition from iOS to Android (and vice versa). The CMA also advises to require organizations to facilitate the installation of apps outside the App Store and Play Store. In addition, Apple and Google may be forced to offer more freedom of choice in payment options and browsers.
“Can” is the key word, because as long as the bill remains a proposal, Apple and Google will prosecute as normal. Only time will tell whether the British government is increasing its influence on the market. For now, nothing more than growing attention to the subject is set in stone.
