Tech giants Apple and Google have too much power over the mobile phone market with action needed to stop them taking more, a UK watchdog says.
The UK’s Competition and Markets Authority said the two companies are limiting people's choices by having a "stranglehold" on the market.
The watchdog claimed, as the companies are allowed to push their own services, it pushes out other competition in the market.
The report was published after a year of research which found mobile browsers and cloud gaming services are used as ways of using their dominance to unfairly shut out other companies.
Apple has its own search engine, Safari, on its iPhones which makes it harder for other apps to be noticed as the in-built browser is so prominent. They also block alternatives to their search engines which shuts out other competitors.
They looked at Google ’s Play Store and how they enable customers to make in-app payments and the conditions they set, with the watchdog also investigating Apple's app store back in March 2021.
Andrea Coscelli, chief executive of the CMA, said: “When it comes to how people use mobile phones, Apple and Google hold all the cards.
“As good as many of their services and products are, their strong grip on mobile ecosystems allows them to shut out competitors, holding back the British tech sector and limiting choice.
“We all rely on browsers to use the internet on our phones, and the engines that make them work have a huge bearing on what we can see and do.
"Right now, choice in this space is severely limited and that has real impacts – preventing innovation and reducing competition from web apps. We need to give innovative tech firms, many of which are ambitious start-ups, a fair chance to compete.
“We have always been clear that we will maximise the use of our current tools while we await legislation for the new digital regime.
"Today’s announcements – alongside the 8 cases currently open against major players in the tech industry, ranging from tackling fake reviews to addressing problems in online advertising – are proof of that in action.”
Apple disagreed with the report and said in a statement: "“We believe in thriving and competitive markets where innovation can flourish.
"Through the Apple ecosystem we have created a safe and trusted experience users love and a great business opportunity for developers.
"In the UK alone, the iOS app economy supports hundreds of thousands of jobs and makes it possible for developers big and small to reach customers around the world,”
"We respectfully disagree with a number of conclusions reached in the report, which discount our investments in innovation, privacy and user performance — all of which contribute to why users love iPhone and iPad and create a level playing field for small developers to compete on a trusted platform.
"We will continue to engage constructively with the Competition and Markets Authority to explain how our approach promotes competition and choice, while ensuring consumers’ privacy and security are always protected.”
