The CMA market regulator has launched a market investigation into Apple and Google with a focus on how the two companies ‘dominate’ the mobile browser market. In addition, the CMA is looking at how Apple would restrict cloud gaming with the App Store.
The Competition and Markets Authority said it was considering a market investigation in June, but first wanted to hear comments from stakeholders, such as developers and cloud gaming service providers. Based on those responses, the authority says it is actually launching a market investigation into the two companies.
Among other things, the research focuses on the grip that both companies have when it comes to mobile browsers on their smartphones. For example, Apple does not allow browser engines other than Safari, and Android phones often have Chrome installed by default. The stakeholders say that the current situation is bad for their business operations, hinders innovation and entails additional costs.
Web developers complain, for example, that Apple’s Safari obligation, coupled with “alleged lagging investments in Apple’s browser technology,” creates higher costs because the developers face “bugs and glitches” when creating web pages.
As a result, these developers would sometimes have ‘no choice’ but to create a mobile app, when a website could actually have sufficed.
In addition to Google’s and Apple’s alleged browser power, the CMA looks at Apple’s behavior regarding cloud gaming. Apple would only allow remote gaming if both devices belong to the user and also both are connected to the same Wi-Fi network. The CMA says restrictions when it comes to cloud gaming could cause the industry to grow less and prevent some UK gamers from cloud gaming.
Apple and Google argue that their restrictions on mobile browsers, and in Apple’s case on cloud gaming, are necessary to protect users. The CMA wants to look at whether additional rules are needed to promote competition and give customers more choice. Such market research should normally be completed within eighteen months.
