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The
Competition and Markets Authority (CMA) said on Friday it was
also taking enforcement action against Alphabet Inc's Google
over its app store payment practices.
It said the two tech giants had an "effective duopoly" on mobile
ecosystems that gave them a stranglehold on operating systems,
app stores and web browsers on mobile devices.
"When it comes to how people use mobile phones, Apple and Google
hold all the cards," CMA Chief Executive Andrea Coscelli said
following the publication of a report on mobile ecosytems.
"As good as many of their services and products are, their
strong grip on mobile ecosystems allows them to shut out
competitors, holding back the British tech sector and limiting
choice."
It said 97% of all mobile web browsing in Britain last year was
powered by either Apple's or Google's browser engine, and in
addition Apple banned alternatives to its own browser on iPhone.
The CMA said it was concerned 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 it had "created a safe and trusted
experience users love and a great business opportunity for
developers" through its ecosystem.
"We respectfully disagree with a number of conclusions reached
in the report, which discount our investments 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 a trusted platform," a
spokesperson said.
"We will continue to engage constructively with the CMA to
explain how our approach promotes competition and choice, while
ensuring consumers’ privacy and security are always protected."
Google said smartphones using its Android operating system
offered people and businesses more choice than any other mobile
platform, and its Google Play app store has been the launchpad
for millions of apps.
"We regularly review how we can best support developers and have
reacted quickly to CMA feedback in the past," a Google
spokesperson said.
"We will review the report and continue to engage with the CMA."
The regulator said it was also worried about Apple blocking the
emergence of cloud gaming services, which allow high-quality
games to be streamed rather than individually downloaded.
"By preventing this sector from growing, Apple risks causing
mobile users to miss out on the full benefits of cloud gaming,"
it said.
The CMA said its proposed investigation would further assess its
concerns and could result in legally binding orders requiring
changes to be made to Apple's and Google's practices.
The consultation on the proposed the market investigation
reference will close on 22 July.
(Reporting by Yadarisa Shabong in Bengaluru and Paul Sandle in
London; Editing by Anil D'Silva and Elaine Hardcastle)
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