Apple and Google Face a New Threat. Regulator Says They ‘Hold All the Cards.’

Due to superiority in mobile browsers and cloud-based entertainment, Apple and Google face rising legal restraints in the United Kingdom.

The Competition and Markets Authority (CMA) announced Friday that it is discussing the initiation of a market probe against Apple and Google. Both are controlled by Alphabet (GOOGL). The case is aimed at Apple's Safari and Google's Chrome browsers.

According to the CMA, the watchdog would therefore inspect Apple's limitations on cloud gaming operable by marketplaces and prosecute Google over payment methods on these platforms.

"Apple and Google have all the power whenever it regards consumer's usage of smartphones," A. Coscelli stated in her comments. "As brilliant as many of their products and services are, their tight grip on digital networks enables them to keep away competitors, lowering real options and practically eliminating the tech sector in the UK."

According to the authority, the judgment follows a thorough examination of both companies' mobile platforms, which decided that they have a "dominant duopoly" on mobile ecosystems, granting both a "tight grasp" on operating systems and app marketplaces, as well as mobile browsers. According to the CMA, Apple and Google were incentivized to maintain or even increase their market dominance without government involvement, undercutting the competition.

In a statement, a Google representative stated: "We will examine the findings and continue on cooperation with the CMA. Android phones provide more options for consumers and businesses than any other mobile platform. Google Play has served as the launching pad for many phone apps, assisting developers in creating worldwide enterprises that support the employment of 250 thousand workers in the UK."

In a report, an Apple executive stated: “Our company opposes all of the conclusions expressed in the study, since they disregard the company's efforts in innovation, transparency, and user potential. We will continue to work with the CMA to illustrate how our approach promotes competition and options while always respecting consumers' safety and privacy," Apple representative stated.

The CMA's inquiry is the latest test for Big Tech as legislators and regulatory agencies around the world work to reduce the power of these enterprises, which are some of the world's largest.

Because of their dominance over these app markets, each of these companies has been threatened with legal action in the United States. Epic Games sued both Apple and Google in 2020 over app store payment policies.