by Apple and Google have an “effective duopol” with their mobile platforms and may be forced to open them for more competition, according to a British watchdog.
The competitive and market authority (CMA) has announced suggestions to give the US tech giants the “strategic market status” for their mobile platforms that could enforce changes that benefit consumers, companies and app developers.
According to new rules, which recently came into force, companies that were set with the status can be raised to them that strengthen the competition for British companies and the selection of consumers.
The regulatory authority has described “targeted and proportional” measures to improve the competition in app stores, so-called interoperability, selection of consumers and the services for artificial intelligence (AI).
Apple and Google both criticized the proposal to determine their platforms with the special status, but the consumer group which? said it should ultimately lead to more innovation and selection for consumers.
An earlier CMA market study, published in 2021, showed that Apple and Google Mobile ecosystems dominated in operating systems, app stores and web browsers.
This meant that the two companies were able to effectively determine the rules for the working method of mobile browsers on their devices.
According to CMA, around 90% to 100% of the British mobile devices are carried out on the mobile platforms of Apple or Google.
Sarah Cardell, managing director of the regulatory authority, said: “Apple and Google’s mobile platforms are of crucial importance for the British economy. They play an important role in our whole life, from banking and shopping to entertainment and education.
“But our previous investigation has determined opportunities for more innovation and selection.”
She added that measures had to be taken quickly.
“Time is of crucial importance – since competitive agencies and courts take measures worldwide in these markets, it is important that Great Britain does not fall back,” she said.
Potential measures described by the CMA include actions in app stores that make the app review process fair and transparent and smartphone users can reduce from app stores to make purchases.
The CMA will also grant an app developer interoperable access to Apple functions so that they can create competitive products and services.
It also wants the restrictions that Apple places on digital wallets so that other financial technology companies can compete, while smartwatches and headsets can connect seamlessly with cell phones.
