British regulators on Thursday launched an investigation into the smartphone ecosystems of Apple and Google to assess whether they have a "strategic market position" (SMS). The investigation will focus on the operating systems, app stores and browsers these companies run on mobile devices, and their impact on users and businesses that develop content and services such as apps for iOS and Android devices. According to a press release from the CMA, issues investigated by the CMA include:
The level of competition between and within the Apple and Google mobile ecosystems. The CMA will assess competition between Apple and Google's mobile ecosystems and what obstacles may prevent other competitors from offering rival products and services on Apple and Google's platforms.
The market power of Apple and Google may be used for other activities. That would include investigating whether Apple or Google use their positions in operating systems, app distribution or browsers to favor their own apps and services, which are often pre-installed and prominently featured on iOS and Android devices.
Potentially exploitative behavior. This will include investigating whether Apple or Google require app developers to sign unfair terms and conditions as a condition of publishing apps on Apple and Google's app stores, and whether users may be faced with a "choice architecture" that makes it difficult to proactively choose which apps to use on their mobile devices.
If deemed in a "strategic market position," potential behavioral requirements that these companies would have to comply with could include requiring Apple or Google to open up key features that other apps need to run on mobile devices, or making it easier for users to download apps and pay for content within them outside of Apple and Google's own app stores.
CMA chief executive Sarah Cardell said:
"The operating systems, apps and browsers installed on our phones and tablet devices are our gateways into the digital world - whether that's communicating with friends and loved ones, or purchasing from merchants or accessing creative content. A more competitive mobile ecosystem can foster new innovation and new opportunities across a range of services used by millions of people, whether in app stores, browsers or operating systems. Better competition can also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple and Google's platforms."
This is the second SMS investigation announced in as many weeks, the first looking into Google search market share of about 90%. The CMA said at the time that it would conduct a second investigation this month, and now we see it. The SFC can impose substantial fines for non-compliance, including fines of up to 1% of a company's global annual turnover, with additional fines for continued non-compliance. Individuals holding senior management positions may also face fines or disqualification as directors.
The investigation will take no more than nine months, and the statutory deadline for both investigations is October 22, 2025. The two investigations are separate and the CMA is conducting a market investigation into the restrictions on mobile browsers and cloud gaming implemented by Apple and Google.