The UK’s Competition and Markets Authority (CMA) has moved to intensify regulation of the mobile tech giants Apple and Google by proposing a new “Strategic Market Status” (SMS) designation for both companies. This decision marks a major step under the UK’s recently enacted Digital Markets, Competition and Consumers Act (DMCCA), aimed at addressing the significant dominance these tech giants have in the tech ecosystem.
This regulation specifically applies to companies that have a “substantial and entrenched market power” in a digital activity in the UK, a “position of strategic significance” in that digital activity, and a global turnover exceeding £25 billion or UK turnover exceeding £1 billion.
The CMA’s proposal focuses on the mobile platforms offered by Apple and Google, including their operating systems, app stores, and web browsers. The CMA’s investigation found that Apple and Google maintained an “effective duopoly” with approximately 90-100% of UK mobile devices running on either company’s platform. For instance, Apple’s Safari browser has an 80-90% share on Apple’s mobile ecosystem, while Google’s Chrome holds a 70-80% share amongst Android users.
It is due to this large influence and “duopoly” that the CMA identified several problematic practices that have affected developers and users. According to the regulating body, developers face inconsistent app review processes across these platforms, leading to uncertainty and delays in launching new apps. The app store search rankings appear opaque and potentially biased towards the tech giants’ own products, and they charge hefty commission fees of up to 30% for in-app purchases as well as restrict developers from steering customers to alternative payment options.
There are also limitations on developers’ access to device functionalities, which curtails innovation. Furthermore, default settings and pre-installations often favor the services of both companies, ultimately influencing consumer choice through what the CMA calls “choice architecture.”
The CMA has released a roadmap of potential interventions split into categories by priority. The highest priority measures, targeted for late 2025, include enforcing fair and transparent app review and ranking processes, mandating Apple to allow developers to direct users outside its App Store for purchases, and ensuring fair treatment of interoperability requests from developers.
Medium-term measures, expected in the first half of 2026, involves enabling alternative browser engines on iOS in order to prevent self-preferencing of company-owned services, and investigate controls around emerging AI technologies.
Lower priority items include changes to default app settings and better data transfer capabilities between iOS and Android devices. The CMA also keeps an eye on international developments like alternative app stores and third-party payment methods.
However, both companies have expressed strong opposition to the proposals. Apple has warned that the regulations could “undermine [their] privacy and security protections” and force the company to share proprietary technology to foreign competitors without compensation. Google also called the decision “disappointing and unwarranted,” arguing that new regulations should be evidence-based and proportionate to avoid stifling innovation.
“We’re concerned the rules the UK 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,” an Apple spokesperson expressed. “We will continue to engage with the regulator to make sure they fully understand these risks.”
Oliver Bethell, Google’s Senior Director for Competition, also emphasized that it is “crucial that any new regulation is evidence-based, proportionate and does not become a roadblock to growth in the UK.” He also adds that Google remains “committed to constructive engagement with the CMA for the duration of this process.”
Juxtaposed with the European Union’s Digital Markets Act (DMA), which enforces a uniform set of rules on all designated “gatekeepers,” the UK’s CMA moves slightly differently. The UK CMA model, albeit also aiming to complement international regulatory efforts, especially favors more tailored, proportionate remedies unique to each company’s circumstances.
The CMA will be consulting on these provisional designations with final decisions expected by October 2025.
