If those proposals become law, the Digital Markets Unit (DMU) – which will sit within the CMA – will ultimately be responsible for deciding which ‘big tech’ firms get SMS status. These proposals may change as a result of the consultation process and any subsequent legislative process, and so will be subject to ongoing review. The CMA’s work so far suggests, that Apple and Google would meet the criteria for ‘Strategic Market Status’ (SMS) designation for several of their ecosystem activities, as set out in the government’s recent proposals to create a new pro-competition regime for digital markets. Making it easier for users to choose alternatives to Apple and Google for services like browsers, in particular by making sure they can easily set which browser they have as default. Making it easier to install apps through methods other than the App Store or Play Store, including so-called “web apps”.Įnabling all apps to give users a choice of how they pay in-app for things like game credits or subscriptions, rather than being tied to Apple’s and Google’s payment systems. Making it easier for users to switch between iOS and Android phones when they want to replace their device without losing functionality or data. The report sets out a range of actions that could be taken to address these issues, including: The CMA agrees that these considerations are very important but is concerned that Apple and Google are making decisions on these grounds that favour their own services and limit meaningful choice, when other approaches are available. Developers are required to accept these terms in order to reach users, which can include paying 30% commissions to Apple and Google.īoth firms argue that many of these controls are needed to maintain the security and quality of the overall service to their users, and in some cases to safeguard users’ personal information. These agreements encourage the pre-installation of Play Store and Chrome, which means they are used by the overwhelming majority of Android customers.Īpp developers also have to comply with Apple and Google’s rules for access to their app stores, which some say are overly restrictive. A similar situation appears to arise with Google through its contracts with Android device manufacturers, despite offering its Android platform on an open source basis. As a result, it is extremely difficult for any other firm to enter and compete meaningfully with a new system.Īpple does not allow alternative app stores to its own and has rules in place which limit the functionality of other browsers. The CMA has provisionally found that Apple and Google have been able to leverage their market power to create largely self-contained ecosystems. We think that the best way to do this is through the Digital Markets Unit when it receives powers from government. This control can limit innovation and choice, and lead to higher prices – none of which is good news for users.Īny intervention must tackle the firms’ substantial market power across the key areas of operating systems, app stores and browsers. But it can be easy to forget that they set all the rules too – from determining which apps are available on their app stores, to making it difficult for us to switch to alternative browsers on our phones. Most people know that Apple and Google are the main players when it comes to choosing a phone. The CMA is also concerned that people could be facing higher prices than they would in a more competitive market, including for Apple phones, app subscriptions and purchases made within apps.Īndrea Coscelli, Chief Executive of the CMA said:Īpple and Google have developed a vice-like grip over how we use mobile phones and we’re concerned that it’s causing millions of people across the UK to lose out. People also appear to be missing out on the full benefit of innovative new products and services – such as so-called ‘web apps’ and new ways to play games through cloud services on iOS devices. The CMA is concerned that this is leading to less competition and meaningful choice for customers. Google’s browser, Chrome, and app store also come pre-installed on most Android devices. They can also tilt the playing field towards their own services – for example, Apple does not allow any other app store than its own on iPhones and iPads, and its browser Safari comes pre-installed on those. As a result, Apple and Google are able to control how online content, such as mobile apps and websites, is provided to users. When someone buys a mobile device, they essentially enter either Apple’s iOS or Google’s Android ecosystem. Firms exercising a “vice-like grip” over mobile devices.Įarlier this year, the Competition and Markets Authority (CMA) launched a probe over concerns that Apple and Google have too much control over operating systems (iOS and Android), app stores (App Store and Play Store), and web browsers (Safari and Chrome) that together form their ‘ecosystems’.
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