Report from TechCrunch
In Brief – The UK Competition and Markets Authority (CMA) has designated both the Apple and Google mobile ecosystems as having “strategic market status” (SMS) under the Digital Markets, Competition and Consumer’s Act (DMCC). The CMA found that both have “substantial, entrenched market power and a position of strategic significance in their respective mobile platforms” and that mobile device owners are unlikely to switch between Apple and Google’s mobile platforms once they have adopted one, but noted that designating them with SMS is not a finding of wrongdoing and does not introduce any immediate requirements. In July, the regulator proposed designating the two platforms as having SMS and have confirmed that following feedback from over 150 stakeholders and discussions with the two companies. CMA roadmaps to promote competition on the Apple and Google mobile platforms outline possible mandates including “fair and transparent” app reviews and app store rankings and allowing app developers to “steer” users to other platforms to make purchases and avoid commissions.
Context – The DMCC is essentially the UK version of the EU Digital Markets Act (DMA). There are operational differences, and the EU has had a couple of year head start. The DMA sets out 18 high-level competition policy-inspired mandates for “core platform services” of “gatekeeper” companies with specific requirements created on the go via company-by-company investigations. The DMCC has the CMA designate that a digital giant has SMS status in a market. Google Search was the first, followed by the Apple and Google mobile ecosystems. Plan on the Amazon and Microsoft cloud businesses as well. Then the CMA establishes tailored rules for the SMS platform and enforces them. The two markets also have regulatory regimes governing how digital platforms address objectionable content, with the UK Online Safety Act and the EU Digital Services Act described as “regulatory cousins”. The EU is expected to soon designate ChatGPT as a Very Large Online Platform under the DSA and establish the European Commission as its lead DSA regulator.