Britain’s competition watchdog is considering an investigation into Apple (AAPL) and Google’s (GOOGL) ‘effective duopoly’ in the mobile phone market.
The Competition and Markets Authority (CMA) says that the companies have a ‘stranglehold’ on areas including app stores and mobile browsers.
Andrea Coscelli, the chief executive of the CMA, said, “When it comes to how people use mobile phones, Apple and Google hold all the cards.
‘Apple and Google hold all the cards’
Coscelli said, “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.”
The CMA highlighted cloud gaming – which Apple has blocked from its app store – and mobile browsers as problem areas.
Apple and Google: analyst forecasts
Both Google and Apple are ranked a Strong Buy on Tipranks.
When it comes to Google, 30 analysts suggest Buy for Google stock and no analysts suggest investors should Hold or Sell.
At $3,245, the average Google price target represents a 50.52% change from the last price.
With Apple, the stock is rated a Strong Buy, with 21 analysts advising Buy, six advising investors to Hold and no analysts recommending Sell.
The average Apple price target is $187.73, representing a 39.77% change from the last price.
97% of all browsing
Browsers are powered by an ‘engine,’ and 97% of all mobile web browsing in the UK in 2021 was on browsers powered by either Apple’s or Google’s browser engine.
Apple bans alternatives to its own browser engine on its mobile devices – and the CMA says this makes it difficult for rivals to differentiate themselves from Apple’s Safari.
The CMA also launched a competition law investigation into Google’s Play app store and in particular how users can pay for digital products.
The CMA already opened an investigation into Apple’s app store in 2021.
An Apple spokesperson said, “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.”
