2025-10-22 15:13:06

The UK’s competition watchdog has formally designated Apple and Google as possessing “strategic market status” (SMS) under the country’s new Digital Markets Competition Regime.

The Competition and Markets Authority (CMA) confirmed that both companies meet the legal threshold for SMS designation across their mobile operating systems, app stores, and browsers, including Apple’s iOS and Safari, and Google’s Android and Chrome.

As a result of the finding, regulators will be allowed to impose stricter oversight on how the tech giants operate their mobile ecosystems.

The decision follows months of consultation with more than 150 stakeholders, including developers, device makers, and consumer groups.

Will Hayter, Executive Director for Digital Markets at the CMA, said in a statement: “Apple and Google’s mobile platforms are used by thousands of businesses right across the economy.

“But the platforms’ rules may be limiting innovation and competition.

“Today’s designations mean we can now take targeted, proportionate action to ensure these markets work well for consumers and businesses.”

The new regime, which took effect on January 1, 2025, gives the CMA’s Digital Markets Unit expanded powers to curb anti-competitive behavior among major tech firms deemed “gatekeepers” – those whose platforms are essential for reaching users.

While the ruling does not imply wrongdoing, it allows the CMA to mandate changes that could include opening app stores to third-party payment systems or requiring broader interoperability between devices.

The watchdog also noted that AI advancements are unlikely to weaken Apple and Google’s dominance within the next five years, as consumers remain heavily locked into either ecosystem.

Together, the two firms account for nearly 100 per cent of UK smartphone operating systems, underscoring their pivotal role in the £40 billion app economy, which contributes around 1.5 per cent of UK GDP.

The UK joins the EU, U.S., and Japan in intensifying scrutiny of digital platforms that underpin much of the global mobile economy – setting the stage for a new era of regulatory accountability in Big Tech.

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