The watchdog said Apple and Google hold an “effective duopoly," with 90-100% of mobile devices in Britain running on either mobile platform. Its investigation found a range of concerns affecting businesses and consumers such as unpredictable app reviews, inconsistent app store search rankings and commissions on in-app purchases of as much as 30%.
The CMA also unveiled separate “roadmaps” for each company outlining possible measures to improve competition, including “fair and transparent” app reviews and app store rankings to give British app developers “certainty."
The watchdog also recommends letting app developers "steer" users to channels outside of app stores where users can make purchases, mirroring similar efforts by the European Union.
Google called the watchdog's decision "disappointing and unwarranted," and said Android has saved app developers money because they didn't have to adapt to different operating models for each smartphone.
It's “crucial that any new regulation is evidence-based, proportionate and does not become a roadblock to growth in the U.K.,” the company's senior director of competition, Oliver Bethell, said.
Apple said it was worried the CMA's moves could pose increase risks for users and jeopardize the U.K.'s "developer economy."
“We’re concerned the rules the U.K. is now considering would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors," Apple said in a statement. "We will continue to engage with the regulator to make sure they fully understand these risks.”
The regulator is seeking feedback on its proposal and has until Oct. 22 to make a final decision.