The UK’s Competition and Markets Authority (CMA) has launched two separate investigations into the ‘mobile ecosystems’ involving Apple and Google. They are part of the CMA’s strategic market status (SMS) investigations into digital activity.

In a press release on Thursday, the regulator said the probes “will assess in parallel these firms’ position in their respective ‘mobile ecosystems’ which include the operating systems, app stores and browsers that operate on mobile devices.”

It will also “explore the impact on people who use mobile devices and the thousands of businesses developing innovative services or content such as apps for these devices,” the release added.

The announcement from the CMA comes only a couple of days after its former head was pressured into resigning by ministers due to the need for ‘a different strategic approach towards economic growth’.

The departure of Marcus Bokkerink, who took office in September 2022, was confirmed by the government in a statement on Tuesday evening, signalling the government’s willingness to make some tough decisions if it felt these were needed.

The latest investigation also comes just a few days after the CMA launched another investigation, which it said was ” aimed at assessing “Google’s position in search and search advertising services.”

The regulator had explained in a press release that that assessment will also look into how Google’s position “impacts consumers and businesses including advertisers, news publishers, and rival search engines.”

‘Work for all’ markets

According to government figures, around 56 million people in the UK have access to smartphones and, on average, spend around 3 hours per day using them.

“Almost 15,000 businesses are involved in the development of apps used on mobile devices in the UK, and the total UK revenue for app development is estimated to be around £28 billion,” the government press release adds.

Given the scope of the industry, and the competition involved, the CMA has said it was to make sure “that these markets work well for all businesses, large and small, to create maximum opportunities for growth, investment and innovation across the UK economy.”

Apple and Google’s smartphone industry monopoly is mainly due to the fact that almost all such phones in the UK have either Apple’s iOS or Google’s Android systems pre-installed on them.

The two tech giants are also able to give their respective browsers and other services exclusive or leading status, at the cost of other competitors in the market.

“This means Apple and Google are also able to exert considerable influence over much of the content, services and technological development provided on a mobile device,” the CMA has said.

Sarah Cardell, chief executive of the CMA, has said “More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems. Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple’s and Google’s platforms.”

Both tech giants have reacted to the latest investigation. Google said it favours “a way forward that avoids stifling choice and opportunities for UK consumers and businesses alike, and without risk to UK growth prospects.” Apple said it will “continue to engage constructively” with the UK regulator.

Details of probe

The regulator has said “issues that will form part of the CMA’s investigations include:

• The extent of competition between and within Apple’s and Google’s mobile ecosystems. The CMA will assess how competition is working across Apple’s and Google’s mobile ecosystems and what barriers may be preventing other competitors from offering rival products and services on Apple’s and Google’s platforms.
• Possible leveraging of Apple’s and Google’s market power into other activities. This will include investigating whether Apple or Google are using their position in operating systems, app distribution or browsers to favour their own apps and services, which often come pre-installed and prominently placed on iOS and Android devices.
• Potential exploitative conduct. This will include investigating whether Apple or Google are requiring app developers to sign up to unfair terms and conditions as a condition of distributing their apps on Apple’s and Google’s app stores; and whether users may be presented with ‘choice architecture’ which makes it difficult to make active choices about which apps they are using on mobile devices.”

The CMA has also said it “will take a proportionate and transparent approach to this investigation and will now focus on engaging a wide range of stakeholders, including device manufacturers, software developers and user groups – as well as gathering evidence from Apple and Google before reaching a decision by the end of October 2025.”