CMA proposes to designate Apple, Google with ‘strategic market status’

The U.K.’s Competition and Markets Authority on Wednesday proposed to designate Apple (AAPL) and Google (GOOGL) with “strategic market status” in each of their mobile platforms and has published separate roadmaps of potential actions to improve competition. The CMA said: “Apple and Google’s mobile platforms hold an effective duopoly, with around 90 – 100% of UK mobile devices running on Apple or Google’s mobile platform. The CMA’s investigation has heard concerns affecting businesses and consumers in the UK. These differ across Apple and Google but include: inconsistent and unpredictable app review processes can create uncertainty for developers, meaning delayed or failed launches inconsistent app store search rankings may favour apps owned by the firms up to 30% commission on some in-app purchases, as well as restrictions on developers ‘steering’ customers outside of their app stores.” The CMA welcomes views on its proposed designation decisions and accompanying roadmaps. A final decision on both SMS designations will be made by October 22.