Apple, Google duopoly under scrutiny as UK regulator launches probe into cloud gaming
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Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL) came under additional scrutiny from worldwide regulators on Tuesday as the U.K.'s Competition and Markets Authority launched a probe into the tech giant's "effective duopoly" on mobile browsers and cloud gaming.
In a statement, the CMA said that 97% of all mobile web browsers in the U.K. last year came from either Apple's (AAPL) or Google's (GOOG) (GOOGL) browser engines, so any restrictions could result in a "major impact on usersâ experiences."
The CMA added there are more than 800,000 users of cloud gaming services in the U.K., but restrictions placed on mobile devices could negatively impact growth in the sector.
"Many UK businesses and web developers tell us they feel that they are being held back by restrictions set by Apple and Google," Sarah Cardell, interim Chief Executive of the CMA, said in the release.
"We plan to investigate whether the concerns we have heard are justified and, if so, identify steps to improve competition and innovation in these sectors," Cardell added.
As a result of a consultation with a number of constituents, including browser vendors, web developers and cloud gaming service providers, the CMA decided that a fuller investigation was needed into how both companies dominate the mobile browser markets and how Apple (AAPL) restricts cloud gaming in the App Store.
Apple (AAPL) and Google (GOOG) (GOOGL) shares both saw fractional moves in premarket trading on Tuesday.
Earlier this month, investment firm UBS said wait times for Apple's (AAPL) iPhone 14 lineup had continued to move higher and were now at the "high-end" of extreme levels.