Apple and Google have a ‘vice-like grip’ on phones, UK regulators warn

(AFP via Getty Images)

Apple and Google have a “vice-like grip” over people’s phones, the UK’s regulator has warned.

The two companies have been able to exercise total control over the content that people can get on their devices, through the dominance of Apple’s iOS and Google’s Android ecosystem, it said.

Buying a smartphone means entering one of those two ecosystems, giving the two companies control over how apps, websites and other content are delivered to users, the Competition and Markets Authority warned. That duopoly limits users’ choice and is hampering the market, it said.

“The CMA is concerned that this is leading to less competition and meaningful choice for customers,” it said in a statement. “People also appear to be missing out on the full benefit of innovative new products and services – such as so-called ‘web apps’ and new ways to play games through cloud services on iOS devices.

“The CMA is also concerned that people could be facing higher prices than they would in a more competitive market, including for Apple phones, app subscriptions and purchases made within apps.”

The findings came after the UK’s CMA launched a probe into worries that the two companies were able to exercise too much power over their relative ecosystems. It is just one of a number of regulatory investigations around the world, amid increasing concern over the power of tech companies.

“Apple and Google have developed a vice-like grip over how we use mobile phones and we’re concerned that it’s causing millions of people across the UK to lose out,” said Andrea Coscelli, chief executive of the CMA.

“Most people know that Apple and Google are the main players when it comes to choosing a phone. But it can be easy to forget that they set all the rules too – from determining which apps are available on their app stores, to making it difficult for us to switch to alternative browsers on our phones. This control can limit innovation and choice, and lead to higher prices – none of which is good news for users.

“Any intervention must tackle the firms’ substantial market power across the key areas of operating systems, app stores and browsers. We think that the best way to do this is through the Digital Markets Unit when it receives powers from government.”

In a statement, Apple claimed that it faces “intense competition”, and that it would be working with regulators as the work on the study continued.

“Apple believes in thriving and dynamic markets where innovation can flourish. We face intense competition in every segment in which we operate, and our North Star is always the trust of our users. We will continue to create new opportunities for developers while protecting our user’s privacy and security,” a spokesperson said.

“Our rules and guidelines are constantly evolving, and we have made many recent changes that benefit developers and consumers alike. We will continue to engage constructively with the UK Competition and Markets Authority as their work on this study progresses.”