Apple and Google face intensifying antitrust crackdown

Such a designation would subject the two tech giants to stricter rules under the Digital Markets, Competition and Consumers (DMCC) Act, which is similar in scope and function to the EU's Digital Markets Act (DMA) and is due to enter force next year.

Over the last couple of years, an independent inquiry group at the Competition and Markets Authority (CMA) has been digging into Apple and Google's practices pertaining to the mobile browser and cloud gaming markets.

The investigation was triggered by an earlier probe that took place between 2021 and 2022 and concluded that these two operate an effect duopoly that gives them a stranglehold on these markets.

The inquiry group has now shared its provisional finding that when it comes to mobile browsers, the market is "not working well" for both consumers and UK businesses, and that most of the concerns it has identified specifically relate to Apple.

"Apple's rules restrict other competitors from being able to deliver new, innovative features that could benefit consumers," the CMA said.

"Other browser providers have highlighted concerns that they have been unable to offer a full range of browser features, such as faster Webpage loading on iPhone. Many smaller UK app developers also told us that they would like to use progressive Web apps – an alternative way for businesses to provide apps to mobile users without downloading apps through an app store – but this technology is not able to fully take off on [Apple] iOS devices."

"In addition, the group has provisionally found that a revenue-sharing agreement between Google and Apple significantly reduces their financial incentives to compete in mobile browsers on iOS."

The CMA panel also found that even though Apple and Google offer users a choice of default Web browser, they can manipulate the process in a manner that makes their own browser appear as the clearest and easiest option.

It's not all bad news for Apple though. When it comes to the cloud gaming market, the iPhone maker has loosened restrictions on cloud gaming apps being sold via its App Store since the investigation began, so the CMA panel has provisionally concluded that no intervention is necessary.

As for what happens next, well, it's characteristically convoluted.

The reason being, the investigations up to this point were conducted under the Competition Act. However, when it comes to the tech sector, this law will make way next year for the aforementioned DMCC.

But in order to assign SMS status to Apple and Google, a new investigation under the DMCC is required, and that is what the CMA's inquiry panel has called for. Indeed, earlier this year, the CMA actually closed separate investigations into Apple and Google's app store practices, opting to keep its powder dry until the new law comes into effect.

"The analysis set out in this report and a range of potential interventions considered to address the market issues identified by the group merits consideration by the CMA board under its new powers, which have been specifically designed for digital markets," said Margot Daly, chair of the CMA's independent inquiry group. "Under those new powers, the CMA can consider the case for designating firms with strategic market status, taking account of the interplay between the specific markets that are the subject of this market investigation and Apple's and Google's wider mobile ecosystems."

It will probably take years, but with the UK keen to maintain regulatory parity with the EU, the CMA seems more determined than ever to hold big tech's feet to the fire.