The CMA’s findings are consistent with findings elsewhere, however the UK could be the first to put in place ex-ante rules to address them
A vice-like grip that harms competition and innovation: On 14 December, the CMA released its interim report of the market study it launched back in June. It couldn’t have been more explicit in its findings, referring to a “vice-like grip” of Apple and Google over mobile devices. Consumers find themselves entering one of the two ecosystems, which are largely self-contained. Not only does this mean they rarely switch between operating systems, but also makes it very difficult for any other company to enter this market and meaningfully compete with the two established players. Such a scenario could affect innovation, since consumers are missing out for example on web apps or on cloud gaming, the emergence of which has been blocked in Apple’s iOS.
The CMA’s findings align with those elsewhere: The findings of the CMA do not come as a surprise considering the recent international context. Regulators in several countries have similarly identified Apple and Google as threats to competition in mobile markets. In Australia, the ACCC found the two companies to have significant market power in the distribution of mobile apps, noting that such power is strongly linked to the duopoly in the market for mobile OS. In Japan, the Fair Trade Commission is currently investigating whether Apple and Google leverage their dominance in the same market to eliminate competition and severely limit options for consumers. One aspect regulators are commonly highlighting is that Apple and Google do not allow alternatives to app stores’ own payment system. Policymakers in South Korea have already passed legislation to prevent this, and even in the US this is now a real possibility too.
Regulation is coming for both Apple and Google in the UK: While the CMA is not the first to accuse Apple and Google of being a duopoly, the UK could be the first country where a regulator imposes ex-ante remedies to address it. The CMA’s market study doesn’t automatically mean measures will be adopted once it’s complete. However, the CMA indicates a set of possible remedies, including interoperability requirements, and notes that Apple and Google would likely meet the criteria to be designated with Strategic Market Status (SMS) once the proposed competition regime for digital markets becomes law. This could result in the two companies facing legally enforceable codes of conduct. The Government still needs to draft the legislation, which is expected to be adopted during 2022.
Source: https://www.gov.uk/government/news/apple-and-google-duopoly-limits-competition-and-choice
