‘Vice-like grip’: Why are Apple and Google are under UK regulator’s probe

The UK government’s antitrust watchdog is probing US tech giants Apple Inc and Alphabet Inc over anti-competitive practices and market duopoly. This comes amidst several other probes launched against “big-tech” companies by the European Union and the Japanese government.

So, why are the tech companies being probed?

Apple, the maker of iPhones, and Alphabet, Google’s parent company, have ” too much control over operating systems (iOS and Android), app stores (App Store and Play Store), and web browsers (Safari and Chrome)”. The two companies ‘ecosystems’ stifle competition and ‘meaningful choices’ to customers, according to UK regulator, Competition and Markets Authority (CMA).

“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 CMA chief Andrea Coscelli in a press note released earlier during the probe.

More than half of all smartphones used in the UK in 2020 were Apple iPhones and the rest were versions of Google’s Android operating system (OS)—a share that creates market duopoly, CMA said.

Both Apple and Android phones come with pre-installed app stores that do not support alternative versions. The companies set the rules for app developers to reach users and can include a payment of 30 per cent commissions to these companies.

The CMA has called for the easing of restrictions for other web-app stores on both smartphones.

Apple and Google phones come with inbuilt browsers -Safari and Google- which CMA cites restricts users to choose other browsers thereby restricting options for users.

The ecosystems set up by these two companies make it difficult for other developers to enter/compete in the market and hence CMA plans to set up ‘A new pro-competition regime for digital markets’ to limit the reach of big-tech firms.

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