The Competition and Markets Authority (CMA) has designated Apple and Google with "strategic market status" over their mobile platforms. The UK watchdog found that current rules imposed by the tech giants could be "limiting innovation and competition".
The designation applies to the companies' mobile platforms, including their operating systems iOS and Android, app stores and mobile browsers. This marks the second time the CMA has used its new powers to target major tech firms with this status.
Market dominance revealed
Around 90% to 100% of UK mobile devices run on Apple or Google's mobile platforms, according to the CMA. The regulator found that people are unlikely to switch between the two systems, remaining either Apple or Android users.
Will Hayter, executive director for digital markets at the CMA, said: "Apple and Google's mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms' rules may be limiting innovation and competition."
Strategic status requirements
The strategic market status designation requires companies to have substantial and entrenched market power. They must also have turnover of more than £1 billion in the UK or £25 billion globally.
The decision means the regulator can choose to intervene to open them up to more competition that it says will benefit consumers and businesses. A separate investigation earlier this month found Google had dominance over search engine services, marking the first use of these powers.
Tech giants push back
Oliver Bethell, Google's senior competition director, criticised the decision as "disappointing, disproportionate and unwarranted". He argued that 24,000 Android phone models from 1,300 manufacturers worldwide face "intense competition" from Apple's iOS system in the UK.
Apple's spokeswoman warned that "the UK's adoption of EU-style rules would undermine" the company's ability to create quality products. She said: "We've seen the impact of regulation on Apple users in the EU and we urge the UK not to follow the same path."
Regulatory powers expand
The CMA gained these new powers at the beginning of the year to clamp down on companies dominating digital markets. The regulator launched investigations into Apple and Google's mobile platforms, which incorporates their operating systems, app stores and browsers that appear on mobile phones.
The designation now allows the watchdog to intervene to increase competition across the mobile ecosystem. Hayter confirmed the decision was made "having taken into account the feedback received since our proposed decision".
Sources used: "PA Media" Note: This article has been created with Artificial Intelligence (AI).
