Britain’s Competition and Markets Authority (CMA) announced plans to designate Apple and Google as companies with “strategic market status” (SMS), identifying them as dominant players with significant control over digital markets in the U.K. This status empowers the CMA to require changes that address anti-competitive behaviors.
Focus of the CMA Investigation
The CMA is investigating whether Apple and Google’s control over mobile operating systems, app stores, and browsers creates barriers for competitors and unfairly favors their own apps and services. The regulator is also examining if developers face restrictive or unfair terms when distributing apps through these platforms.
Concerns include inconsistent app review procedures, search ranking biases, steep commissions on in-app purchases, and limitations preventing developers from informing users about alternative payment options.
Market share data indicates Google’s Android leads in the U.K. with over 61%, while Apple’s iOS holds around 38%.
The CMA wants Apple and Google to adopt transparent and fair app review processes, explain delays or rejections clearly, and provide avenues for developers to raise issues. The authority is also exploring ways to enable users to pay for services outside of apps, circumventing high fees, and to ease data transfer between operating systems to help consumers switch platforms more easily.
Looking further ahead, the CMA is considering mandating Apple to allow alternative app stores and sideloading on iOS devices, a major shift from current policies.
Responses from Apple and Google
Apple criticized the proposals, warning that they could weaken privacy and security, hinder innovation, and force the company to share technology with foreign competitors. Google argued that its open-source platforms promote choice and innovation, calling the CMA’s move disproportionate and potentially harmful to U.K. economic growth.
European regulators have already fined Apple €500 million for violating the Digital Markets Act and are pressing for changes in its app store policies. Apple is appealing the fine. Meanwhile, Google faces a €4.1 billion antitrust fine linked to favoring its own services over competitors.
What The Author Thinks
Regulating tech giants to foster fair competition is essential, but it must be done thoughtfully. Overregulation risks disrupting innovation and compromising user security on platforms millions depend on. The best approach balances opening ecosystems for competition with protecting consumer privacy and platform integrity.
Featured image credit: Heute
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