Contribution
I have a list of Government follies here, if the hon. Member would like me to pass them on. In all seriousness, I completely agree with him on the importance of the industry and those jobs, and I am sure that the Minister will pick that up when he responds.
To give an example of the issues with these monopolies, Amazon was forced to remove the “Buy book” button from its Kindle app on iPhones because Apple demanded a 30% cut of every e-book sale. Authors simply cannot afford to forgo that 30%. Instead, readers had to—this is absurd—close the Kindle app, log on to the Amazon system separately, complete their purchase and then reopen the Kindle app. It was only thanks to a court case in the United States that forced Apple’s hand that the “Buy book” button returned.
Spotify cannot include a “Subscribe” button in its iOS app, nor can it tell users in the app what a subscription costs or that a cheaper option exists outside the app. UK Spotify Premium subscribers have faced three price rises in two years, partly because Apple’s 30% cut has to be absorbed somewhere. Every Spotify user in the UK is paying more, and Apple’s rules are a direct reason why.
There are many similar cases in which Apple and Google are inserting themselves directly into the relationship between developers and consumers by forcing developers to use their payment systems. That takes away a consumer’s ability to choose their preferred payment method, causes greater friction when there are issues such as refunds and cancellations, and prevents consumers from properly benefiting from lower prices or discounts.
The UK’s Competition Appeal Tribunal ruled in October 2025 that Apple’s payment restrictions were neither necessary nor proportionate for security or privacy purposes. They were designed to eliminate competition. It is as simple as that. It is estimated that removing the restrictions would release £1.75 billion a year that is currently taken from UK developers and consumers, rising to over £4 billion annually by 2029. That money could go back into British engineering, creative content and the next generation of app businesses built and scaled here. We could unleash the true potential of these industries.
The ability to remove the restrictions and hand UK app developers back their rights already exists in legislation. The Digital Markets, Competition and Consumers Act 2024 gave the CMA conduct-requirement powers—the ability not just to levy fines, but to mandate specific behaviours. The CMA can end Apple’s and Google’s control over in-app communication, ensuring that developers are free to know their own customers and tell their own customers what their own product costs and where to buy it at the best price. Could the Minister outline the Government’s view on pressing the CMA to issue conduct requirements that protect competition?
Another area that we must look at is cloud computing. The UK’s digital economy is underpinned by cloud computing, but cloud has been increasingly monopolised. The CMA’s cloud services market investigation estimated that Amazon Web Services and Microsoft control 70% to 90% of the UK’s cloud computing market. That concentration poses a number of dependency risks, including operational, financial and security vulnerabilities, and restricts market innovation and customer choice.
Just months after the Government published their “Chronic risks analysis”, there were three global cloud outages within a matter of weeks. In two of those, Amazon Web Services and Microsoft were directly impacted, highlighting the risks of over-reliance on a limited number of cloud hosts. Governments, businesses, digital platforms, AI services and individuals were materially impacted by the outages, with US companies alone suffering losses of between $500 million and $650 million. Indeed, the recent CrowdStrike outage is estimated to have cost the UK economy between £1.7 billion and £2.3 billion.
Competition can be the key mitigation for the UK’s digital dependency and, again, it is the CMA that holds the levers to tackle anti-competitive conduct and address the risks of cloud concentration. I am not calling for more legislation or regulation. We do not need it. With the Digital Markets, Competition and Consumers Act, brought in by the last Conservative Government, we have already legislated for stronger digital competition, but slow implementation and weak early enforcement risk squandering a rare pro-growth and pro-SME opportunity.
Only a small number of designations have been made so far. For Google’s and Apple’s mobile ecosystems, the CMA has relied on non-binding “commitments” rather than imposing binding conduct requirements. These non-binding commitments have no clear statutory basis under the 2024 Act, carry no legal consequences if breached and are not contemplated anywhere in the CMA’s published guidance. Their use risks weakening the regime and forcing the CMA to restart enforcement if firms fail to comply, which is precisely the outcome that the last Government sought to avoid. It is also concerning that a requirement for Google to negotiate fair terms with news publishers has been pushed back by at least 12 months, despite the CMA having previously committed to use that power in the first half of this year.
The Government must reaffirm that robust digital competition enforcement is pro-growth and central to the UK’s industrial strategy. Moreover, the CMA must ensure that there is robust competition enforcement. The levers to achieve that were put there by the last Government; it just requires some political will. Fundamentally, the UK cannot build globally competitive tech firms while a handful of dominant platforms control the routes to market, search, app stores, mobile ecosystems, cloud and key AI infrastructure.
The potential for huge economic growth from our tech sector is there, but competition is key. If competition flourishes, we will see more innovation, improved services and lower costs for consumers.