The UK’s Competition and Markets Authority (CMA) has concluded that Apple and Google maintain an “effective duopoly” in the smartphone market, potentially paving the way for tougher regulations on both companies.
Apple and Google could face stricter regulations in the UK after the Competition and Markets Authority (CMA) concluded that the two tech giants hold an “effective duopoly” in the smartphone ecosystem.
According to the CMA, the companies’ dominant positions in mobile operating systems, app stores, and web browsers limit competition and give them extensive control over consumer choice and pricing.
The regulator said its findings could lead to “binding conduct requirements” for both companies under the UK’s new Digital Markets, Competition and Consumers Act.
Sarah Cardell, CEO of the CMA, said: “Apple and Google’s hold over mobile ecosystems means they can dictate the terms that app developers and device makers must follow, often to the detriment of innovation and user experience.
“We are determined to ensure that UK consumers and businesses get a fairer deal.”
The investigation highlighted Apple’s App Store rules and Google’s dominance in Android services as key areas of concern.
It is said that both companies could be required to make changes to their platforms, such as offering more flexibility for third-party app stores and payment systems.
A spokesperson for Google told CNBC: “We are committed to working constructively with the CMA and will continue to give developers and consumers more choices.”
Apple has not yet publicly responded to the regulator’s latest findings.
The CMA’s move comes amid growing global scrutiny of Big Tech, with both Apple and Google already facing antitrust actions in the EU and the U.S.
If implemented, the new UK rules could force the companies to change long-standing practices that critics say stifle competition.
The CMA is expected to publish its final decision later this year, outlining specific obligations that Apple and Google may need to meet to comply with the updated regulatory framework.
Apple and Google face tighter rules as UK regulator says companies have an ‘effective duopoly’
