After launching a probe over concerns that Apple and Google have too much control over operating systems, app stores, and web browsers earlier this year, the United Kingdom Competition and Markets Authority is now reporting its findings.
UK’s watchdog says it’s “concerned this is leading to less competition and meaningful choice for customers. 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 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.”
Apple 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. Most people know that Apple and Google are the main players when it comes to choosing a phone. 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. This control can limit innovation and choice, and lead to higher prices – none of which is good news for users,” said Andrea Coscelli, Chief Executive of the CMA.
The report says CMA has provisionally found that Apple and Google have been able to leverage their market power to create a largely self-contained ecosystem, which makes it “extremely difficult for any other firm to enter and compete meaningfully with a new system.”
With that, the report sets out a range of actions that could be taken to address these issues:
- Making it easier for users to switch between iOS and Android phones when they want to replace their device without losing functionality or data.
- Making it easier to install apps through methods other than the App Store or Play Store, including so-called “web apps”.
- Enabling 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 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.
All of these suggestions have been part of lawsuits that Apple has been facing globally. While the company had addressed some subjects, such as the ability to move from iOS to Android and vice-versa, there’s a lot of controversy about opening iOS to more app stores or giving users different payment systems.
Recently, Apple was granted a delay in complying with App Store changes required by the Epic ruling. A few months ago, the company decided to change some App Store rules after a class-action lawsuit in the US by developers. For example, they will be able to communicate with users about alternative payment solutions outside of their applications.
Not only that, but Apple also announced in August a Small Developer Assistance Fund, which will pay out between $250 to $30,000 to developers making under $1 million per year in the App Store. You can learn more about it here.
As of now, nothing will happen with Apple and Google in the UK. The CMA is consulting on its initial findings and welcomes responses by 7 February 2022. It will then be continuing with the second half of the study and expects to issue a final report in June 2022.
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