UK's watchdog plans to investigate Apple Inc. and Google for their market dominance and how it is affecting other companies. For example, Apple has put restrictions on iPhones and other devices.
CMA, which is responsible for maintaining fair competition among the companies, said that it is also taking action against Google's parent company Alphabet. In the case of Google, the reason for this action is related to the payment practices in its Google Play Store.
Both of these companies (Google & Apple) have established an huge hold and advantage. On the one hand, Google is in control of all the Android devices via its Google services, but Apple also controls most of its digital ecosystem via web browsers and App stores.
According to Andrea Coscelli (CMA Cheif), both Google and Apple hold all the cars when it comes to the usage of mobile phones. In fact, the stronghold of these two companies over the mobile ecosystem means that many other products/services may not stand a chance at all.
This has actually hurt the British tech sector as Google & Apple give preference to their own products in their respective mobile operating systems. On the other hand, it also limits the choice for mobile users as they have to rely on only Apple & Google products.
Google And Apple Control 97% of the Web Browsing Market
According to estimates, the mobile web browsing market is controlled by Apple and Google. In fact, 97% of web browsing (mobile) is done through Google and Apple's browsers. On top of that, Apple had even banned other browsers in the iPhones, which tells us that the CMA's case has a lot of merit in it!
According to CMA, this means that rival browsers will have a hard time competing with Apple's Safari browser in terms of functionality and speed.
However, Apple believes that the statement is not correct as they are committed to providing a level playing field for even the small developers.
As for Alphabet, they also said that their operating system offers a lot more choices than other mobile operating systems. In fact, their Google Play Store (app store) have enabled millions of developers to launch their own apps and games.