Google Criticizes UK Regulator's "Disproportionate" Mobile Ecosystem Designation
Executive Summary
Google has publicly opposed the UK Competition and Markets Authority's (CMA) decision to designate its mobile platform (Android, Play, Chrome) with 'strategic market status'. The company calls the decision "disappointing, disproportionate and unwarranted," arguing that its open ecosystem promotes consumer choice and competition, citing the ability to use third-party app stores and browsers. Google contends this regulatory action introduces uncertainty and runs contrary to the UK's stated goal of creating a pro-growth and pro-innovation digital market.
Key Takeaways
* Core Decision: The UK's CMA has designated Google’s ‘Mobile Platform’ (Android, Play, Chrome, Blink) as having ‘strategic market status’, subjecting it to new digital market rules.
* Google's Position: Google strongly disagrees with the designation, labeling it disproportionate and unwarranted.
* Pro-Choice Argument: Google defends its ecosystem by highlighting that Android is open-source, allows app sideloading and third-party app stores, and faces intense competition from iOS.
* Supporting Data: The company states that over two-thirds of UK Android devices have a non-Play app store preloaded and 70% have a non-Chrome browser installed.
* Economic Impact: Google emphasizes that Android generates over £9.9 billion in revenue for UK developers and supports over 457,000 jobs in the UK.
Strategic Importance
This designation places Google's core mobile business in the UK under significant new regulatory scrutiny, which could force changes to its operations and business model. The outcome will serve as a key test for the UK's new digital markets regime and could set a precedent for regulatory actions in other countries.