GOOG Alphabet Inc

By Joe Hoppe

The U.K. competition regulator said Tuesday that its interim report has found that a duopoly of Apple Inc. and Alphabet Inc.'s Google limits competition and choice, and that the firms are "exercising a vice-like grip" over mobile devices.

The Competition and Markets Authority said its report into mobile ecosystems suggests users are losing out because of the companies' control. It had launched a probe in June over concerns that Apple and Google have too much power over the iOS and Android operating systems, respectively, along with their app stores and web browsers.

The antitrust watchdog said it is concerned that this control is leading to less competition and meaningful choice for customers, as people appear to be missing out on innovative new products and services, along with higher prices.

"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 U.K. to lose out," CMA Chief Executive Andrea Coscelli said.

The CMA said the best way for it to tackle the firms' substantial market power was through a digital market unit once it receives powers from the government.

The report also set out a range of actions to address the issues, including making it easier for customers to switch ecosystems without losing functionality or data and making it easier to install apps through other methods than default app stores.

A spokesperson for Google said its Android app ecosystem supports nearly a quarter of a million jobs across thousands of app-developer and phone-maker businesses in the U.K.

"At Google we regularly review how we can best support these businesses. For example, as a result of recent changes, 99% of developers qualify for a service fee of 15% or less. We're committed to building thriving, open platforms that empower consumers and help developers succeed," the Google spokesperson said.

The CMA is consulting on its initial findings and said it will welcome responses by Feb. 7. It said it will continue with the second half of its study and expects to issue a final report in June.

A spokesperson for Apple said it faces intense competition in all of its segments, and it intends to continue to create new opportunities for developers while protecting its users' privacy and security.

"Our rules and guidelines are constantly evolving, and we have made many recent changes that benefit developers and consumers alike. We will continue to engage constructively with the U.K. Competition and Markets Authority as their work on this study progresses," the spokesperson said.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

December 14, 2021 07:18 ET (12:18 GMT)

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