UK Competition Supervisor Investigate Apple And Google's Dominance In Technology Market

Apple and Google are accused of dominating the technology market in the UK. (photo: doc. pixabay)

JAKARTA - Britain's competition watchdog said it plans to investigate Apple Inc's market dominance and mobile browser Google, as well as the iPhone maker's restrictions on cloud gaming through its app store.

The Competition and Markets Authority (CMA) said on Friday, June 10 that it is also taking enforcement action against Alphabet Inc's Google for its payment practices in its app store.

According to them, the two tech giants have an "effective duopoly" on the mobile ecosystem that gives them a stranglehold on operating systems, app stores and web browsers on mobile devices.

"When it comes to how people use their phones, Apple and Google hold all the cards," CMA Chief Executive Andrea Coscelli said after the publication of the report on the mobile ecosystem, as quoted by Reuters.

"As good as many of their services and products are, their strong grip on the mobile ecosystem allows them to shut out competitors, restrain the UK technology sector and limit options," he added.

According to him, 97% of all mobile web browsing in the UK last year was powered by Apple or Google's browser engine. Additionally Apple forbids alternatives to its own browser on the iPhone.

CMA said it was concerned that this severely limited the potential for rival browsers to differentiate themselves from Apple's Safari, for example on features such as speed and functionality.

Apple said in a statement that it has "created a secure and trusted experience that users love and a great business opportunity for developers" through its ecosystem.

"We respectfully disagree with some of the conclusions reached in the report, which undermine our investment in innovation, privacy and user performance — all of which contribute to why users love iPhone and iPad and create a level playing field for small developers to compete on trusted platforms. , said an Apple spokesperson.

"We will continue to engage constructively with CMA to explain how our approach promotes competition and choice, while ensuring consumer privacy and security is always protected."

Google says smartphones running the Android operating system offer people and businesses more choice than any other mobile platform, and the Google Play app store has become the launch pad for millions of apps.

"We regularly review how we can support the best developers and react quickly to past CMA feedback," a Google spokesperson said. "We will review the report and continue to engage with the CMA."

Regulators said they were also concerned about Apple blocking the emergence of cloud gaming services, which allow high-quality games to be streamed rather than individually downloaded.

"By preventing the growth of this sector, Apple risks causing mobile users to miss out on the full benefits of cloud gaming," said CMA.

The CMA said the proposed investigation would further assess its concerns and could result in a legally binding injunction requiring changes to be made to Apple and Google's practices. Consultation on the proposed market investigation reference will close on July 22.