Tech giant Google has slammed the decision from the UK competition regulator to designate its mobile platform as having strategic market status (SMS).
The Competition and Markets Authority (CMA) has been slowly rolling out SMS designations to the world’s largest tech firms since the enforcement of the Digital Markets, Competition and Consumers Act.
The designation, given to firms which are deemed to hold a disproportionate level of control in a given market, allows the CMA to consider robust interventions to protect competition.
Oliver Bethell, senior competition director at Google described the CMA’s decision on Google as “disappointing, disproportionate and unwarranted”.
Bethell said: “The UK’s new digital markets regime was introduced with the promise of being pro-growth and pro-innovation, with the CMA emphasising that its work would be highly targeted and proportionate. In this context, we simply do not see the rationale for today’s designation decision.”
The Google executive took particular issue with the notion that through Android and the Play Store, the company had too much control over the app store marketplace, claiming that the vast diversity of Android devices and the availability of third-party app stores distinguished Google from Apple’s app store practices.
“The benefits to UK businesses and consumers are clear. Android generates over £9.9bn in revenue for UK developers, supports over 457,000 UK jobs and gives customers a remarkable level of choice. Indeed, the CMA has itself found that 91% of UK consumers are ‘satisfied’ or ‘very satisfied’ with their Android mobile devices,” said Bethall.
“Following the CMA’s decision today, our mobile business in the UK faces a set of new – and, as of yet, uncertain – rules. The CMA’s next steps will be crucial if the UK’s digital markets regime is to meet its promise of being pro-growth and pro-innovation.”
The decision has been praised by the Coalition for App Fairness, an organisation that has been calling for action against the app store duopoly of Apple and Google.
“The CMA’s confirmation that Apple and Google’s mobile ecosystems have Strategic Market Status is a critical step towards fairer digital markets and boosting the UK economy. The CMA’s investigations found that Apple and Google hold monopoly power over the mobile app ecosystem – and now is the time for strong, enforceable conduct requirements,” said Gene Burrus, global policy counsel for the Coalition for App Fairness.
“This decision must now lead to the necessary remedies to spark effective competition in app stores and growth in the UK economy. This includes giving developers the ability to communicate freely and directly with their users about better offers and services, and opening new distribution channels for apps. Only then will consumers see lower prices and have genuine choice.”
