The UK government has initiated a formal investigation into Apple and Google’s dominance over the smartphone market, marking a significant step in regulating big tech companies. The probe, announced by the Competition and Markets Authority (CMA), will focus on the tech giants’ mobile ecosystems, including their operating systems, app stores, and web browsers. This investigation is the second major use of the CMA’s newly strengthened regulatory powers, designed to ensure fair competition and protect consumers.
The CMA’s inquiry will assess whether Apple and Google hold “strategic market status” in mobile ecosystems. This refers to their influential role in shaping the mobile tech landscape, especially through their control over key services like iOS and Android, app marketplaces (App Store and Google Play), and web browsing (Safari and Chrome). The investigation aims to determine the impact of this dominance on both consumers and businesses that rely on these platforms to distribute content and services.
The regulators’ concern lies in the significant power these two companies hold over mobile users and developers. Apple’s iOS and Google’s Android systems collectively dominate over 99% of the global smartphone market, and their respective app stores have become critical gateways for millions of businesses to reach customers. The CMA will examine whether their control limits competition, hinders innovation, or imposes unfair costs on businesses.
This investigation is also motivated by broader concerns around privacy and security, with the UK government eager to explore if the tech giants’ policies are detrimental to user choice and freedom. Both Apple and Google have faced criticism for their app store policies, with developers arguing that the 30% commission on in-app purchases is excessively high. The CMA may look into whether such practices are exploitative or whether alternative app distribution methods should be allowed to flourish.
The CMA’s move comes amid growing global calls for stronger regulation of big tech companies. The UK’s investigation is part of a larger trend in Europe and beyond, with authorities increasingly scrutinizing the market dominance of Apple, Google, and other tech behemoths. In recent years, both companies have faced legal challenges in the EU and the US, raising questions about their market control and regulatory compliance.
As the investigation progresses, it could lead to significant changes in how mobile ecosystems are governed. For Apple and Google, this probe will test the extent to which their business practices can withstand regulatory scrutiny in a rapidly evolving tech environment. For consumers and developers, it could mean greater transparency and a more competitive market for mobile services.
