The Competition and Markets Authority (CMA) has released provisional findings from its investigation into the mobile browsers and cloud gaming markets, highlighting significant competition concerns in mobile browsers, but recommending no further action in the cloud gaming sector. The findings stem from a detailed examination of how Apple and Google operate within mobile ecosystems, following a multi-year investigation launched after concerns were raised in its 2021 Mobile Ecosystems Market Study.

The CMA’s inquiry group provisionally found that competition in mobile browsers is being held back, particularly by restrictions on Apple’s devices. Developers have raised concerns that Apple’s policies prevent them from offering faster or more feature-rich browsers and limit the potential of progressive web apps, which provide an alternative to app store downloads. Additionally, revenue-sharing agreements between Apple and Google were found to dampen competition between the two companies, further entrenching their dominance in this space. These issues, according to the CMA, result in reduced innovation and fewer choices for UK consumers and businesses.

On cloud gaming, the CMA’s initial concerns centred on Apple’s restrictive App Store policies, which previously prevented cloud gaming apps from being distributed. However, Apple has made changes during the course of the investigation, allowing cloud gaming apps to be available, and the CMA has seen evidence of such apps emerging. Based on these developments, the CMA provisionally concluded that there is no need for further intervention in this area.

The inquiry group has proposed addressing the broader concerns in mobile browsers under the forthcoming Digital Markets, Competition and Consumers Act (DMCC Act), which comes into force fully in 2025. This new framework will enable the CMA to investigate digital activities more comprehensively and impose remedies on companies with Strategic Market Status (SMS). While the DMCC Act is designed to address the kinds of structural concerns raised in this investigation, waiting for it to take effect means delaying action for at least another year. This raises the question: if the CMA believes competition is being hindered, why wait to act?

Given the three years already spent on this investigation (involving numerous delays and extensions), some may feel that further postponement leaves UK businesses and consumers waiting too long in uncertainty. The delay also brings into question the urgency of addressing these challenges and, ultimately, asks what, in light of the DMCC Act, the purpose of even continuing the investigation was, considering the CMA was already well aware that under the DMCC Act it was set to be given powers to regulate companies that meet the criteria of SMS as it sees fit.

While the CMA’s decision to defer action may reflect its desire to address these issues comprehensively rather than through piecemeal measures that might prove difficult to enforce under existing powers, the delay raises concerns about the balance between future-proofing regulatory action and taking timely steps to address harm identified today. Needless to say, those who consider that they have already been harmed by ‘past conduct’ and might have been considering associated damages claims will not be pleased with the way this market investigation and the recent app store investigations have been closed on the basis that a ‘future’ DMCC Act remedy will solve all.

The CMA’s provisional findings are a reminder of the challenges regulators face in tackling entrenched digital market power. Fast-evolving markets like mobile browsers and cloud gaming require careful navigation to ensure regulations are impactful and enduring. While the DMCC Act provides a promising framework, it is critical that any delay in action does not come at the expense of businesses and consumers who rely on these markets. Comments on the provisional findings are open until 13 December, with a final decision expected in March 2025.

You can also keep up with all the latest updates on the DMCC Act by bookmarking our tracker.