The UK’s competition watchdog has said it will move to impose new rules on Apple and Google after designating them as holding “strategic market status”, a label reserved for firms with entrenched dominance in critical digital markets.
The Competition and Markets Authority (CMA) said the move is aimed at promoting greater competition and innovation in the mobile sector, which it says has become too reliant on the two US tech giants.
The regulator’s investigation, launched in January, found that Apple and Google effectively hold a duopoly over mobile devices in the UK through their iOS and Android operating systems, app stores and browsers. The CMA has now set out “roadmaps” to make changes it says are “proportionate, pro-innovation”, and in the interest of both UK consumers and businesses.
Areas of initial focus include reforming how the companies run their app stores, particularly the fees developers pay and restrictions on in-app payment methods. The CMA also said it will explore whether digital wallets should be opened up to competitors, citing Apple’s restrictions as a potential barrier to financial innovation.
“Apple and Google’s mobile platforms are both critical to the UK economy,” said Sarah Cardell, chief executive of the CMA. “But our investigation has identified opportunities for more innovation and choice. Time is of the essence: as agencies and courts globally take action in these markets, it’s essential the UK doesn’t fall behind.”
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