UK regulator says Google and Apple control consumers

Google and Apple control how people use mobile phones, eliminating any significant choice from the system and potentially increasing costs, Britain’s competition regulator said on Tuesday.

The CMA (Competition and Markets Authority) said it found that the two companies were able to leverage their market power to create self-sufficient ecosystems.

The regulator said it would assess its initial findings and would seek answers by February 7, with the expectation of issuing a final report in June.

“Apple and Google have developed a similar control to how we use cell phones and we fear this is harming millions of people across the UK,” said CMA Chief Executive Andrea Coscelli.

Chris Philp, the technology and digital economy minister, said Britain’s “new pro-competition regime” would level the playing field between tech giants and small businesses.

Apple says its ecosystems provide security and privacy, allowing companies to sell products and create jobs. “Apple believes in thriving and dynamic markets where innovation can flourish,” the document said.

Google said Android gives people more options than any mobile platform in deciding which apps and app stores to use. It added that its ecosystem supported nearly 250,000 jobs in Britain and, as a result of recent changes, 99% of developers qualified for a service charge of 15% or less.

The CMA report presented a number of options, including making it easier for users to switch between Apple’s iOS and Google’s Android phones without losing functionality or data. The agency is looking into whether users can install apps by methods other than Apple’s App Store or Google’s Play Store.