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Apple And Google They may be forced to change their mobile platforms after the UK’s competition watchdog concluded that existing rules could “limit innovation and competition”.
Competition and Markets Authority (CMA) highlighted the substantial and strong market power held by the two tech giants through their platforms.
As a result, both companies have been designated with “strategic market status”, a classification reserved for the most niche businesses.
The decision gives the regulator the power to intervene, leading to greater competition that is expected to benefit both consumers and businesses.
According to the CMA, 90 to 100 percent of UK mobile devices run on Apple or Google’s mobile platforms.
People are unlikely to switch between the two devices and will either stick with Apple or Android User, it was found.
The CMA received new powers at the start of the year to crack down on players it believes are dominating digital markets.
It launched an investigation into Apple and Google’s mobile platforms, including their operating systems including iOS and Android, app stores, and browsers that appear on mobile phones.
Will Hayter, executive director of digital markets at the CMA, said: “Apple and Google’s mobile platforms are used by thousands of businesses across the economy to connect and sell products and services to millions of customers, but platform rules can limit innovation and competition.
“Taking into account the feedback we have received since our proposed decision, we have today designated Apple and Google’s mobile platforms with strategic market positions.”
Having a strategic market position means that a company has substantial and strong market power, and significant size, scale or influence in terms of their digital activity.
They must have a turnover of over £1 billion in the UK or £25 billion globally.
A separate investigation of Google found that it dominated the market with its search engine services, including Chrome.
That decision, published earlier this month, marked the first time the CMA used its new powers to designate a tech firm with a strategic market position.
Google’s senior competition director Oliver Bethel criticized the watchdog’s decision, calling it “disappointing, disproportionate and unfair”.
“While the UK’s new digital markets regime was introduced with a promise to be pro-growth and pro-innovation, the CMA stressed that its work would be highly targeted and proportionate,” he said.
“In this context, we do not see today’s designation decision justified.”
Mr Bethell said the 24,000 Android phone models from 1,300 phone makers worldwide are “facing intense competition” from iOS systems in the UK.
An Apple spokesperson said: “Apple faces fierce competition in every market we operate in, and we work tirelessly to create the best products, services, and user experiences.
“The UK’s adoption of EU-style rules would weaken this, leaving users with weaker privacy and security, delayed access to new features, and a fragmented, less seamless experience.
“We have seen the impact of regulation on Apple users in the EU and we urge the UK not to follow the same path.”