Further investigations, coupled with ongoing antitrust enforcement, signal a more intense crackdown in lieu of ex-ante rules
Apple and Google currently “hold all the cards”: On 10 June 2022, the CMA completed its year-long market study into mobile ecosystems (i.e. operating systems, app stores and web browsers). Its final report concludes that Apple and Google have a tight grip over these crucial ecosystems, putting them in a powerful and highly profitable position. Though this stewardship has delivered benefits for consumers and businesses (such as substantial investment and popular trusted products), there are also significant downsides. App and web developers face restrictions and terms they must accept, while consumers are likely to miss out on innovations, have less choice and ultimately face higher prices. With these problems entrenched, the CMA has identified several interventions that could unlock competition, protect end users and transform these markets for the better.
New investigations into tech firms’ behaviour: Since publishing its interim report on mobile ecosystems in December 2021 (in which it said it was minded not to intervene), the CMA received several submissions calling for action to be taken in the market for the supply of mobile browsers and browser engines. Stakeholders voiced concerns about how Apple restricts competing browser engines (since all iOS-based browsers must use Apple’s own WebKit engine) and the impact this is having on innovation and consumers. The CMA also heard concerns from cloud gaming providers about how Apple restricts access to their services without a download from Apple’s App Store, thereby having an incentive to not only retain its market power in native app distribution and discovery on iOS, but also to delay the take up of cloud gaming services in order to preserve its market power in mobile devices and operating systems. The CMA is therefore consulting on a proposed market investigation reference (MIR) into mobile browsers and cloud gaming.
The CMA makes clear that it will set the rules of the game: In parallel to the proposed mobile browsers and cloud gaming MIR, the CMA is also taking enforcement action against Google in relation to its Play Store payment practices. This competition law investigation will focus in particular on the conditions Google sets for how users can make in-app payments for certain digital products. The CMA has a separate competition law investigation underway that centres on Apple’s App Store terms and conditions, which it opened in March 2021, and has been keen to stress that it will use its current tools to the fullest before the UK’s new digital regime provides for greater powers. The recent announcements, plus the eight cases currently open against major tech firms, demonstrate that zeal and reflect ongoing antitrust efforts in other jurisdictions, including Germany’s newly-opened investigation into Apple’s app tracking rules.
Source: https://www.gov.uk/cma-cases/mobile-ecosystems-market-study
