The antitrust watchdog of the UK has moved to enhance its scrutiny of the reign of US technology giants Google and Apple by commencing an in-depth investigation into elements of the two companies’ ecosystem dominance. The regulatory body is probing mobile duopoly’s approach toward rival cloud gaming services and mobile browsers after sharing its concern that could be harming consumers on one hand, and restricting competition, on the other hand.
The regulatory action follows a market study that was held by the Competition and Markets Authority (CMA) in 2021 and resulted in a final report issued in the summer of 2022, where the Authority found significant competition concerns. The UK antitrust watchdog found that the two US technology giants have what it described as “an effective duopoly” on mobile ecosystems that pretty much allows both Apple and Google to exercise a strong grip over operating systems, web browsers, and mobile application stores.
Apart from that, the CMA suggested undertaking what is known as a market investigation reference (MIR) with two major issues to focus on – the first one checking on the market power of Google and Apple in mobile web browsers, and the second one checking the cloud gaming restrictions imposed by Apple through its App Store.
The regulator’s proposal for a MIR gave the start to a standard consultation process, with the Competition and Markets Authority seeking some feedback on the proposed probe’s scope. Now, it has confirmed its decision to start investigating the market, which has been referred to as a more thorough and in-depth investigation that could take up to 18 months to be finalised.
The CMA Probe in Google and Apple’s Domination of Mobile Browser and Cloud Gaming Market Could Take up to 18 Months
As explained by the CMA, its probe is set to focus on the supply of mobile browsers and browser engines, as well as the cloud gaming services distribution through so-called app stores available on mobile devices.
The UK’s antitrust regulatory body issued a press release to announce the start of “Phase 2” (or the in-depth phase) of its investigation. The regulator further noted that so far, the responses received during the consultation had shown massive support for a more thorough probe into the two US technology giants’ domination of the mobile browser market and the restrictions on cloud gaming that Apple has been imposing through its App Store.
The official press release published by the Competition and Markets Authority highlights how strategically important mobile browsers are, noting that the majority of people use a web browser to access online content on their smartphone at least every day. Furthermore, it emphasises that 97% of all mobile web browsing in 2021 in the UK occurred on browsers powered by the browser engine of either Google or Apple, which gives the two companies massive control over users’ experiences.
As far as cloud gaming services are concerned, the watchdog is concerned that restrictions applied via various mobile platforms could hurt the developing sector’s growth, which could lead to UK gamers missing out. According to the CMA, those restrictions limit the users’ choices and make it more difficult for people to bring innovative new applications to UK customers. At the same time, Google and Apple have been saying that the restrictions are necessary in order to protect users.
- Author
Daniel Williams
