Nowadays, most people have some kind of smartphone that they carry with them at almost all times. These devices are so deeply intertwined in our daily lives that it’s almost easy not to think about them beyond our personal experience. Our phones just are, like a constant in these scrolling doom times.
But the smartphone industry is a little weird when it comes to market share and therefore control. When you consider that most people own a smartphone that is likely running one of two software options, there isn’t much competition given the incredible size of the market.
Due to this bottleneck, the Competition and Markets Authority (opens in new tab) (CMA) in the UK is planning to launch an investigation into the power of Apple and Google over the mobile market. Andrea Coscelli, CEO of CMA, explained the current concerns around this market domination.
“When it comes to how people use cell phones, Apple and Google have all the cards. As good as many of their services and products are, their strong grip on mobile ecosystems allows them to foreclose on competitors, holding back the industry.” of British technology and limiting choice.”
She also talked about these companies’ controls over people’s browsing habits as well as cloud gaming. There have been many concerns raised around the ability of Google and Apple to deny access to startups that create apps and programs that run on smartphones. Especially in the field of cloud gaming, where many are starting to enter the emerging market.
All this creates an increasingly unequal position in the markets over which these large companies have complete control. Even if Apple is no longer the most valuable company in the world (opens in new tab)you cannot deny these exclusive profits.
The investigation carried out by the CMA has strict rules that it must follow to comply. It will be an in-depth investigation completed by CMA members and must be completed within a certain time frame. Its purpose is to assess whether a market has features that could have an adverse effect on competition, and it looks like they might have a fair case when it comes to smartphone supremacy.
Once an assessment is made, the CMA can then enforce business changes, propose legislation, and even implement major structural solutions to these problems when necessary. This could include getting companies to sell off parts of their businesses. So, depending on CMA’s findings, we could see big changes for smartphones in the future.