Appy days!
At last, phone users could get more choice after watchdog probe into Google and Apple’s grip on systems
GOOGLE and Apple are being investigated by the competition regulator over fears they have too much power in the mobile phone market.
The Competition and Markets Authority ( CMA) announced yesterday it would be ‘taking a closer look’ at the tech giants’ ‘effective duopoly’.
And, in what could be a win for other companies, the CMA added that it would examine whether this market influence was ‘stifling competition’ and ‘harming users’.
The dominance of Google and Apple – which have a combined global revenue of more than £300billion – has come under greater scrutiny over recent months.
Both are already being investigated by the CMA over concerns Apple’s app store and Google’s proposed privacy changes are ‘anti-competitive’.
But the regulator said the new investigation – which will last no more than a year – was ‘much broader’ and that both topics remained within its scope.
Officials will scrutinise Apple and Google’s ‘mobile ecosystems’ – which cover their iOS and Android operating systems, app stores and the Safari and Chrome web browsers.
These are the gateways through which users can access content and services. The regulator will also examine whether this control of the market is stifling innovation and causing consumers to pay more due to higher advertising prices.
Andrea Coscelli, chief executive of the CMA, said: ‘Apple and Google control the major gateways through which people download apps or browse the web on their mobiles – whether they want to shop, play games, stream music or watch TV.
‘We’re looking into whether this could be creating problems for consumers and the businesses that want to reach people through their phones.’
He added: ‘Our ongoing work into big tech has already uncovered some worrying trends and we know consumers and businesses could be harmed if they go unchecked.
‘That’s why we’re pressing on with launching this study now... so we can hit the ground running by using the results of this work to shape future plans.’
Apple is already being probed by the CMA over its app store following complaints that the firm gives its own services an advantage by imposing unfair restrictions on competitors.
The regulator also launched ‘enforcement action’ against Google earlier this year over the giant’s proposed advertising system Privacy Sandbox.
It was feared that Google would use the system to distort competition by favouring its own advertising products and making it harder for other firms to earn money from the web.
Last week, however, the CMA announced it had struck a world-first deal with the tech firm to supervise the ad service as it was set up.
Officials said they had ‘secured commitments’ from the online giant that would protect users’ privacy and safeguard both competition and fair returns for news publishers.
‘Uncovered some worrying trends’