Apple and Google’s UK smartphone and app store dominance under fire

The news: The UK’s Competition and Markets Authority (CMA) is intensifying its investigations into Apple’s and Google’s smartphone ecosystems and app store duopoly.

Regulatory concerns are centered on the duopoly’s operating systems, app stores, and mobile web browsers that run 90% of UK smartphones. The lack of alternatives stifles competition and innovation under the CMA’s new digital rules, per Bloomberg.

Overseas regulation gets tighter: While Big Tech companies like Apple and Google are expecting a more relaxed regulatory environment in the US under the Trump administration, regulators in the UK and the EU are escalating efforts to keep monopolies and duopolies in check. 

• Under new leadership, with former Amazon executive Doug Gurr as CMA chair, UK regulators are hunting for a big win by enforcing tougher digital market rules.
• The European Commission (EC) is studying its investigations into Apple, Google, and Meta under its Digital Markets Act (DMA) and could redouble efforts to regulate or fine companies, per Reuters.

The US Federal Trade Commission (FTC) and Department of Justice (DOJ) reducing antitrust regulation could provoke foreign regulators to take a tougher stance on Big Tech giants.

Smartphone giants respond: Both Apple and Google seem geared to work with regulators on a path forward.

• “Apple believes in thriving and dynamic markets where innovation can flourish,” an Apple spokesperson said, per Bloomberg. The company said it will “continue to engage constructively with the CMA as their work on this matter progresses.”
• Google senior director of EMEA competition Oliver Bethell said, “We favor a way forward that avoids stifling choice and opportunities for UK consumers and businesses alike, and without risk to UK growth prospects.”

The challenge: Smartphone platforms will be hard pressed to address mounting regional regulatory challenges while maintaining services and features on a global scale.

Key takeaway: This heightened overseas scrutiny could lead to significant changes in how these companies operate, potentially altering their business models. 

While antitrust investigations aim to promote competition and innovation, there’s a risk that excessive regulation could stifle innovation and investment in the tech sector.

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