CMA targets Apple, Google over mobile browser dominance

(Sharecast News) - The UK competition watchdog is proposing stepping up scrutiny of Apple and Alphabet's Google in mobile ecosystems, it was confirmed on Wednesday. The Competition and Markets Authority said it was proposing designating the two US tech giants with so-called strategic market status (SMS) in each of their mobile platforms. SMS allows the CMA to impose certain interventions on firms.

In addition, the regulator has also published roadmaps for potential further action focusing on a number of areas, including app stores, interoperability and AI services.

Apple's Safari and Google's Chrome dominate mobile browsers on iPhones and Android devices respectively, with nearly all UK mobile devices running on either platform.

Sarah Cardell, CMA chief executive, acknowledged that both platforms were "critical" to the UK economy, from banking to shopping.

"But our investigation has so far identified opportunities for more innovation and choice," she said.

"The targeted and proportionate actions we have set out today would enable UK app developers to remain at the forefront of global innovation while ensuring UK consumers receive a world-class experience."

However, Google called the proposals "disappointing and unwarranted", telling Reuters: "It is...crucial that any new regulation is evidence-based, proportionate and does not become a roadblock to growth in the UK."

Apple said it was concerned the new rules could undermine the private and security protections that its users expected.

The CMA first launched the two separate SMS probes in January.

The UK's app developer community is Europe's biggest by revenue and content, the CMA said, generating an estimated 1.5% of the UK's GDP and supporting around 400,000 jobs.

However, the CMA said that during its investigations, both businesses and consumers flagged various concerns. These included inconsistent app store search rankings, up to 30% commission on some in-app purchases and unpredictable app review processes.

The CMA will now consult on the proposed SMS designations and roadmaps, with the final decision on status made by 22 October.