The U.K. is preparing to step up regulation of digital giants Apple and Google, amid growing concerns about their dominant position in the country's mobile ecosystem. The Competition and Markets Authority (CMA) has announced its intention to assign companies a Strategic Market Status (SMS), which will open up opportunities for deeper antitrust intervention.
The investigation, launched in January, covers key areas of digital activity for both companies: operating systems, app stores, and browsers. The regulator is investigating whether internal mechanisms of Apple and Google hinder the development of competition, as well as whether their market dominance is used to impose their own services at the expense of third parties.
Based on the results of the analysis, the CMA identified several problem areas. These include non — transparent application moderation and ranking procedures, restrictions on informing users about external payment methods, a high commission of up to 30 percent for in-game transactions, and possible access of companies to confidential information of competing developers. Especially acute is the issue of the inability of third-party platforms to promote their own solutions outside the App Store and Google Play.
Android accounts for more than 61 percent of the smartphone market in the UK, while iOS accounts for just over 38 percent. At the same time, Google controls not only the Android operating system, but also the Google Play app store and the Chrome browser, while Apple controls the App Store and Safari.
Among the changes proposed by the CMA is a requirement for Apple and Google to ensure transparency and objectivity of app evaluation processes, publish a ranking methodology in search, and provide developers with the ability to direct users to alternative payment methods, bypassing internal commissions. It also discusses simplifying the transfer of user data between iOS and Android, and in the future — the legalization of alternative app stores and direct downloading of programs (sideloading) outside of official platforms.
Apple said that the proposed measures undermine the security and privacy of users, jeopardize innovation and could lead to the transfer of technology to competitors. Google, for its part, emphasized the openness of its platform and the significant contribution of Android to the development of the British IT sector, calling for a balanced and evidence-based approach to regulation.
Amid pressure from regulators in the U.K. and the European Union, digital corporations are facing the need to rethink their global strategy. Already in April, Apple was fined 500 million euros in the EU, and antitrust disputes continue against Google, including claims to promote its own services to the detriment of independent developers.
The current situation shows a growing trend towards a global revision of the rules of operation of digital platforms. Advanced economies strive to create a more balanced and competitive environment in which the interests of developers, consumers, and the innovation ecosystem are treated equally with those of multinational corporations.
