The UK's Competition and Markets Authority or CMA has pointed out that both Apple and Google have too much power over the UK's phone market.
The UK watchdog criticized the two tech giants for pushing their own services to users and blocking their competition in the market from getting ahead.
Apple and Google Has a Tight Hold on the Phone Market
According to The Independent, the watchdog fears that Apple and Google could become even more dominant and limit the consumer's choices because they both have a stranglehold on the market.
The watchdog published a report about the influence of Apple and Google after a year of research. The report shows that the two tech giants used mobile browsers and cloud gaming services to shut out other companies.
Apple has Safari, its very own search engine, which makes it harder for other apps to be noticed by iPhone users because the in-built browser is prominent.
Apple is also accused of blocking alternatives to their search engines, which unfairly shuts out other competitors.
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As for Google, the Competition and Markets Authority reviewed Google's Play Store and how they enable customers to make in-app payments. The UK watchdog also reviewed Google's terms and conditions.
Andrea Coscelli, the chief executive of the Competition and Markets Authority, said that Apple and Google "hold all the cards."
Coscelli pointed out that even though the services and products offered by the two tech giants are great, their strong grip on the mobile market allows them to shut out competitors, holding back the tech sector and limiting the consumers' choices.
Coscelli added that Apple and Google also limit what people see on the internet because they control their own engines. It prevents innovation, and it reduces competition from web apps.
The UK watchdog wants start-ups to have a fair chance to compete in the market.
Apple Denies Blocking Start-Ups
According to Barrons, Apple released a statement in response to the CMA's report. The iPhone maker said that even though they've created an ecosystem to give users a safe and trusted experience, they do not deliberately prevent competitors from thriving in the tech sector.
Apple also pointed out its contribution to UK's economy, adding that the iOS app economy alone supports thousands of jobs and makes it possible for app developers, both big and small, to reach customers around the world.
Apple also said that they would reach out to CMA to explain how their approach promotes competition, which is different from what the watchdog accused them of.
Google has not responded to CMA regarding the report, but this is not the first time that the tech giant has been accused of blocking rival payment options on Google Play.
According to Bloomberg, The Competition Commission of India found Google discriminated against developers in its Play Store billing policy.
The findings were revealed in April after the Commission did a months-long investigation. The India watchdog began the investigation after it received several complaints from developers stating that Google charges an unfairly high fee in return for using Android app stores.
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Written by Sophie Webster
