The Competition and Markets Authority (CMA) of the United Kingdom has launched an investigation into policies relating to Apple and Google's market dominance in cloud gaming and mobile browsers.
In a recent press release, the UK watchdog said that a previous investigation found that Apple and Google maintain an effective duopoly on mobile ecosystems, allowing them to exert unfair control over various operating systems, app stores, and web browsers on mobile devices.
Holding All the Cards
The inquiry is the result of a consultation initiated by the CMA in June, which challenged how much control the two major tech companies have over the entire mobile industry. This hinted at a fuller investigation in the future.
The consultation found support from browser vendors and cloud gaming service providers who claim to be constrained by the duopoly, with approximately 86% requesting an in-depth investigation.
The CMA believes that in the absence of interventions, both corporations will maintain, if not strengthen, their dominance in the field, further reducing competition and decreasing incentives for innovators.
The government body also stated that Apple and Google power 97% of all mobile web browsing in the UK in 2021 and that any restrictions on these engines will have a significant impact on user experiences.
Browsers are among the most significant and widely used mobile apps. The majority of people use their browsers at least once a day to access online content such as information, news, videos, and shopping.
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A Closer Look
A report from 9to5Mac tells us that a ban on cloud gaming apps is one of the restrictions imposed on App Store gaming apps. This implies that a developer cannot offer an app that allows users to access multiple games hosted on cloud servers.
It is also speculated that the Cupertino company's goal here is to protect its share of per-game revenue while preventing competition for its own Apple Arcade subscription gaming service.
Meanwhile, a Google spokesperson told Digitaltrends that the company continues to stress the open nature of Android.
"We're committed to building thriving, open platforms that empower consumers and help developers build successful businesses," said a Google spokesperson via email to Digitaltrends.
Responses to the consultation show strong support for a more thorough investigation into how Apple and Google dominate the mobile browser market, as well as how Apple restricts cloud gaming through its App Store.
Many came from browser vendors, web developers, and cloud gaming service providers who claim that the status quo is hurting their businesses, stifling innovation, and adding unnecessary costs.
The CMA asserts that these limitations reduce choice and might make it more challenging to get promising new apps into the hands of UK consumers. Apple and Google have countered by saying that restrictions are necessary to safeguard users.
In its market investigation, the CMA will take these issues into account and determine whether new regulations are necessary to promote better results.
