REG - Competition and Mkts - Investigation into cloud gaming and browsers

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22/11/2022 11:30

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RNS Number : 2119H  Competition and Markets Authority  22 November 2022

 

 

FOR IMMEDIATE RELEASE - TUESDAY 22 NOVEMBER

 

Investigation into cloud gaming and browsers to support UK tech and consumers

·    In-depth investigation launches today following consultation

·    86% of responses to consultation support taking a closer look at
concerns identified earlier this year

·    UK-based developers say current restrictions hold them back, stifling
innovation

 

The CMA has launched a market investigation into cloud gaming and mobile
browsers after receiving widespread support for its proposals first published
in June.

 

The Competition and Markets Authority consulted on launching a market
investigation alongside its Mobile Ecosystem Market Study
(https://www.gov.uk/government/news/cma-plans-market-investigation-into-mobile-browsers-and-cloud-gaming)
report, which found that Apple and Google have an effective duopoly on mobile
ecosystems that allows them to exercise a stranglehold over operating systems,
app stores and web browsers on mobile devices.

 

Browsers are one of the most important and widely used apps on mobile devices.
Most people use their browser at least daily to access online content such as
information, news, videos and shopping. 97% of all mobile web browsing in the
UK in 2021 happens on browsers powered by either Apple's or Google's browser
engine, so any restrictions on these engines can have a major impact on users'
experiences.

 

Computer games are a multi-billion pound industry in the UK, played by
millions of people. There are already more than 800,000 users of cloud gaming
services in the UK but restrictions on their distribution on mobile devices
could hamper growth in this sector, meaning UK gamers miss out.

 

Responses to the consultation, which have been published today, reveal
substantial support for a fuller investigation into the way that Apple and
Google dominate the mobile browser market and how Apple restricts cloud gaming
through its App Store. Many of those came from browser vendors, web
developers, and cloud gaming service providers who say that the status quo is
harming their businesses, holding back innovation, and adding unnecessary
costs.

 

Web developers have complained that Apple's restrictions, combined with
suggested underinvestment in its browser technology, lead to added costs and
frustration as they have to deal with bugs and glitches when building web
pages, and have no choice but to create bespoke mobile apps when a website
might be sufficient.

 

Ultimately, these restrictions limit choice and may make it more difficult to
bring innovative new apps to the hands of UK consumers. At the same time,
Apple and Google have argued that restrictions are needed to protect users.
The CMA's market investigation will consider these concerns and consider
whether new rules are needed to drive better outcomes.

 

Market investigations can result in changes to companies' behaviour and
restrictions, which improve competition and lead to greater choice for
consumers and better-quality products.

 

Sarah Cardell, interim Chief Executive of the CMA, said:

 

"We want to make sure that UK consumers get the best new mobile data services,
and that UK developers can invest in innovative new apps.

 

"Many UK businesses and web developers tell us they feel that they are being
held back by restrictions set by Apple and Google. When the new Digital
Markets regime is in place, it's likely to address these sorts of issues. In
the meantime, we are using our existing powers to tackle problems where we
can. 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."

 

 

For more information, visit the mobile browsers and cloud gaming market
investigation (https://www.gov.uk/cma-cases/mobile-browsers-and-cloud-gaming)
page.

 

Notes to editors:

 

1.   A market investigation by the CMA is an in-depth investigation led by
CMA panel members. The CMA must generally conclude a market investigation
within 18 months from the date that the reference is made. Market
investigations consider whether there are features of a market that have an
adverse effect on competition (AEC). If there is an AEC, the CMA has the power
to impose its own remedies on businesses and it can also make recommendations
to other bodies such as sectoral regulators or the government - when
legislation might be required for example. The CMA has wide powers to change
the behaviour of firms, such as governing the way a product is sold in a
particular market and the information that is available to customers buying
that product. The CMA also has the power to impose structural remedies which
can require companies to sell parts of their business to improve
competition.

 

2.   The CMA's work to date has identified widespread concerns in relation
to digital advertising and mobile ecosystems. It has concluded that it can
tackle these issues most effectively with its anticipated new powers via the
Digital Markets Unit, which will allow the CMA to actively monitor, enforce
and update remedies. The CMA continues to support the government to bring
forward the necessary legislation, which it committed to in the Autumn
Statement on 17 November 2022. In the meantime, the CMA is committed to using
its existing powers to deliver one-off interventions in digital markets, where
these are found to be necessary to improve outcomes for UK consumers and
businesses. In particular, should the market investigation find problems with
cloud gaming and mobile browsers, it may be able to tackle these via a one-off
removal of restrictions.

 

3.   For media enquiries, contact the CMA press office on 020 3738 6460 or
press@cma.gov.uk.

 

 

 

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