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UK Google, Apple duopoly investigation overview:
- Who: The United Kingdom government, specifically the Competition and Markets Authority, is investigating an alleged duopoly between Google and Apple.
- Why: The agency says web developers feel held back by the two tech giants and that their dominance in the web browser market could be harmful to consumers.
- Where: The investigation will take place within the UK, where 97% of mobile web browsing last year was powered by either Apple or Google browsers.
A division of the United Kingdom’s government that is tasked to investigate markets to “ensure that consumers get a good deal when buying goods and services” announced an investigation into tech giants Google and Apple. The investigation follows an initial study that alleges the two companies operate within a duopoly when it comes to gaming and mobile browsers.
In a press release, Sarah Cardell, UK’s Competition and Markets Authority (CMA) interim chief executive, says the purpose of the investigation is to ensure “consumers received the best new mobile data services and that developers could invest in innovative new apps.”
The Google and Apple investigation may last up to 18 months. Investigators will attempt to determine whether there are features of the market that have an adverse effect on competition, according to the press release.
Previous study identified ‘widespread concerns’ about Apple, Google
The CMA says previous work identified “widespread” concerns regarding digital advertising and mobile ecosystems.
The recent announcement followed a year-long study of both companies’ mobile ecosystems. The study determined that “Apple and Google have an effective duopoly on mobile ecosystems that allows them to exercise a stranglehold over these markets, which include operating systems, app stores and web browsers on mobile devices,” according to the CMA press release.
“Without interventions, both companies are likely to maintain, and even strengthen, their grip over the sector, further restricting competition and limiting incentives for innovators,” the press release on the Apple and Google investigation says.
In addition to the control the two companies have over mobile browsers, the UK government alleges that Apple “blocked the emergence of cloud gaming services on its App store.” In one of the more notable examples, Epic Games sued Apple, claiming it charges exorbitant fees on games like Fortnite. Apple makes Epic pay a 30% commission on in-app payments, the press release on the Google and Apple investigation states.
The Apple and Google investigation intends to look into how Google and Apple approach rival mobile browsers, according to the press release.
Google and Apple both deny the claims. Apple issued a 15-page response to the CMA’s decision.
In the second paragraph of the report, Apple states, “WebKit and Safari have pioneered innovation, enhanced user choice and prompted responses from competitors. Apple does not restrict users’ ability to download and use alternative browser apps, nor does it prevent other browsers from differentiating themselves from Safari.”
Google issued a 10-page response, claiming its Android phones offer “users and businesses more choice than any other.”
In a separate but related issue, a consumer filed a class action lawsuit in 2021 alleging that Apple misled iPhone users by issuing an iOS update that throttled device performance on older model phones.
Do you think Apple and Google have created a duopoly? Let us know in the comments!
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