The UK’s competition watchdog is taking aim at Big Tech’s mobile dominance. Here’s what it means for businesses, developers, and consumers.
What is happening with Apple and Google in the UK?
The UK’s Competition and Markets Authority (CMA) has escalated its scrutiny of Apple and Google, launching a formal move to designate both tech giants as having “Strategic Market Status” (SMS) under new digital market legislation. The decision could result in sweeping changes to how both companies operate in the UK, particularly around app distribution, payment systems, and browser technologies.
This development, announced on 23 July, marks one of the first significant applications of the UK’s Digital Markets, Competition and Consumers Act, which came into force earlier this year. The legislation gives the CMA powers to impose binding obligations on large digital firms deemed to hold entrenched and substantial market power.
Why are Apple and Google being targeted?
Apple and Google control virtually all access to mobile operating systems in the UK. According to the CMA, the two firms account for between 90% and 100% of mobile usage – a concentration that the regulator describes as an “effective duopoly.” The CMA argues that this dominance limits consumer choice, restricts innovation, and allows both firms to impose terms that developers and users cannot realistically refuse.
Andrea Coscelli, Chief Executive of the CMA, said:
“We’ve consistently found Apple and Google exert too much influence over mobile operating systems, app stores, and web browsers. The new rules allow us to address this directly and ensure fairer outcomes for users and developers.”
What is Strategic Market Status (SMS)?
Strategic Market Status is a legal designation applied to firms with substantial and entrenched market power in digital markets. Once designated, companies can face binding obligations to change how they operate.
If the SMS designation is confirmed, Apple and Google could be legally required to change how they operate in the UK. The CMA has outlined several potential interventions it would explore following the designation:
- Payment systems: Apple and Google may be required to allow developers to steer users to external payment options, bypassing the companies’ in-app payment systems and the commissions – often up to 30% – that come with them.
- Browser competition: On Apple devices, developers are currently required to use Apple’s WebKit browser engine. The CMA may force Apple to permit alternative browser engines, enabling more innovation in mobile web technologies.
- Digital wallets and device interoperability: Apple could also be compelled to open up features such as tap-to-pay functionality to third-party providers, potentially impacting how users make contactless payments on iPhones.
- App store fairness: Both companies may face new transparency rules around app review processes and search rankings to ensure they do not favour their own apps over those of competitors.
How have Apple, Google and the industry reacted?
The CMA’s proposals have drawn mixed reactions across the tech and business landscape.
Apple has pushed back strongly. In a statement, the company warned that the proposals could “undermine the security, privacy and user experience that our customers value,” and claimed they may ultimately require Apple to give away its intellectual property to rivals. Apple also raised concerns that opening up its ecosystem could expose users to increased risks of fraud and malware.
Google offered a more measured response, stating it would “continue to engage constructively with the CMA,” but stressed that its platforms support thousands of UK businesses and developers.
Some industry voices have called for the CMA to go further. Epic Games, which has long battled Apple and Google over app store rules, called the current proposal “a missed opportunity.” The company argued that without mandates for full app store alternatives, the reforms may fall short of unlocking true competition.
Consumer groups, on the other hand, have broadly welcomed the CMA’s approach. Which? said the reforms could lead to lower prices and more choice for consumers by curbing anti-competitive practices.
What are the next steps in the CMA’s investigation?
The CMA has opened a consultation period running until 19 August. A final decision on SMS designation is due by 22 October 2025. If confirmed, the regulator will then develop and consult on tailored rules for each company, likely into early 2026.
Unlike traditional competition law investigations, which can take years to reach a conclusion, the SMS framework allows the CMA to act more swiftly and proactively. This could lead to earlier and more direct outcomes, rather than relying on lengthy court proceedings or negotiated settlements.
Is the UK alone in challenging Apple and Google’s dominance?
The UK is not alone in challenging the dominance of major tech firms. The European Union’s Digital Markets Act has already forced changes such as allowing third-party app stores on iOS in Europe. The U.S. Department of Justice is pursuing antitrust cases against both Apple and Google, and regulators in Australia, Japan and South Korea are similarly examining app ecosystems.
However, the CMA’s move stands out for being the first significant test of a bespoke legal regime designed specifically to govern digital market giants. If successful, it could become a blueprint for other countries seeking to rein in the power of Big Tech without resorting to court battles.
What could the CMA’s strategic market status decision mean for the future?
The CMA’s push to designate Apple and Google as holding strategic market status is a bold step in rebalancing the UK’s mobile ecosystem. While tech firms are likely to resist, the regulator appears committed to leveraging its new powers to drive competition, lower prices, and give consumers and developers more control over the digital services they use daily.
