Apple and Google have 'effective duopoly' in UK says regulator

Apple and Google are two of the most powerful technology companies in the world, and in the United Kingdom, they control almost all of the mobile phone market. The UK's Competition and Markets Authority, or CMA, is currently investigating how these companies operate their app stores, browsers, and operating systems. According to the CMA, about 90 to 100 percent of mobile devices in the UK use either Apple or Google's platforms. Because of this, the CMA says that Apple and Google have what is called an 'effective duopoly,' meaning they are the only two major players in the market.

The CMA is considering new rules that could force Apple and Google to change the way they run their services in the UK. These changes are meant to encourage more competition and give consumers more choices. One of the main concerns is how Apple and Google promote their own apps in their app stores, sometimes making it harder for other companies' apps to be noticed. The CMA wants to make sure that all app developers have a fair chance to reach users.

If the CMA decides to go ahead with these new rules, Apple and Google would be given 'strategic market status. ' This means they would have to follow special rules to make sure they are not using their power to block competition. The companies have one month to respond to the CMA's proposals before a final decision is made in October. If the decision is finalized, Apple and Google may have to make significant changes to their services in the UK.

Apple has said that it is worried these new rules could hurt its customers by making it harder to protect their privacy and security. Apple also says that the rules could stop them from creating new and better products. Google, on the other hand, says that its Android system and Play Store already offer users a lot of choice, security, and innovation. Both companies say they will work with the CMA to explain their concerns.

Consumer rights groups like Which? have welcomed the CMA's investigation. They say that while Apple and Google have helped drive innovation, their control over the market is now causing problems for both consumers and other businesses. The CMA's investigation is part of a larger trend, as governments in the UK, Europe, and the United States are all looking at ways to regulate big tech companies and make sure they do not have too much power.

In Europe, Apple has already faced restrictions on how it runs its App Store, and it is fighting similar rules about payment options. Google is also being asked to make changes to its search engine and app store to make the market more open. The CMA says it is not accusing Google of breaking any laws, but it wants to make sure there is a clear plan for making the market more competitive.

The CMA's goal is to make sure that UK consumers get the best possible experience and that UK app developers can keep creating new and exciting products. The final decision will be made in October, and it could lead to big changes in how people use their phones in the UK. Both Apple and Google will have to wait to see what the CMA decides, but the outcome could have a major impact on the future of technology in the country.