On Friday, the Competition and Markets Authority (CMA) released provisional findings from its inquiry into the mobile browser and cloud gaming markets, indicating that Apple (NASDAQ:AAPL)'s policies might be stifling innovation in mobile browsers. The independent inquiry group has suggested that the CMA board use new digital markets powers to investigate Apple and Google (NASDAQ:GOOGL)'s mobile ecosystem activities. However, it has proposed no further action on cloud gaming, as primary concerns have been addressed.
The CMA's investigation, initiated after a Mobile Ecosystems Market Study in 2021, revealed that Apple and Google's duopoly over mobile ecosystems could be limiting how browsers function on iOS and Android devices. The findings pointed to Apple's restrictions making it difficult for competitors to introduce innovative features that could benefit consumers, such as faster webpage loading on iPhones. The group also found that a revenue-sharing agreement between Google and Apple might be lessening their incentives to compete in mobile browsers on iOS.
Concerns were raised about the limited ability for progressive web apps to fully operate on iOS devices, which has implications for smaller UK app developers. Additionally, the report addressed the potential manipulation of user choices by Apple and Google to favor their own browsers.
Regarding cloud gaming, the CMA noted that Apple's recent changes to allow cloud gaming apps on the App Store have diminished the need for regulatory intervention. With evidence of cloud gaming apps now emerging, the group concluded that the primary concern no longer exists.
The provisional decision recommends that the CMA board prioritize an investigation under the forthcoming Digital Markets, Competition and Consumers Act, set to be enforced in January 2025. This Act will empower the CMA to designate firms with Strategic Market Status and potentially impose interventions to foster a competitive environment.
Margot Daly, chair of the CMA's independent inquiry group, emphasized the importance of competition for innovation and consumer choice. The CMA is seeking feedback on these provisional findings until 13 December and anticipates a final decision by March 2025. Further details can be found on the CMA's case page for the Mobile Browsers and Cloud Gaming market investigation.
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