Brit competition watchdog takes aim at Google, Apple's mobile ecosystems

CMA flexes its new Strategic Market Status muscles

The UK's Competition and Markets Authority (CMA) is launching Strategic Market Status (SMS) investigations into both Apple and Google, probing the duo's control of their respective mobile ecosystems.

SMS is a "designation" the CMA gives to corporate titans with substantial market share. They must generate revenues of more than £1 billion ($1.23 billion) in the UK, or global sales in excess of £25 billion ($30.76 billion).

The investigations are wide-ranging, and areas being looked into include the operating systems, app stores, and browsers on mobile devices, as well as the impact on people that use them and businesses that develop content and services.

The watchdog is planning to examine competition within the respective ecosystems, investigate if and how Google and Apple use their market power with regard to other activities (for example, favoring their services), and if the pair make developers sign up to "unfair terms" to get apps into their stores. The CMA is also interested in whether either or both companies present users with a "choice architecture" that makes it tricky to choose which apps to use.

A decision based on the inquiry is scheduled for the end of October 2025, and the CMA warned it could include forcing the companies to open up access to key functionality or enable access to third-party app stores.

Sarah Cardell, chief executive of the CMA, called mobile devices and the software running on them "our gateway into the digital world."

"More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use, be they app stores, browsers or operating systems. Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple's and Google's platforms."

The CMA began an SMS investigation into Google's search and advertising business earlier in January, using powers aimed at curbing the market dominance of tech giants via the UK's digital markets competition regime, which came into force on January 1.

Apple did not respond to a request for comment.

Oliver Bethell, Senior Director for Competition at Google, said: "Android's openness has helped to expand choice, reduce prices, and democratize access to smartphones and apps. It's the only example of a successful and viable open source mobile operating system.

"We favor a way forward that avoids stifling choice and opportunities for UK consumers and businesses alike, and without risk to UK growth prospects."

Both Google and Apple are under fire by regulators concerned about competition. For example, Apple was recently criticized for its interoperability efforts (or lack thereof) under the EU's Digital Markets Act (DMA). Google has also come under the gaze of US lawmakers over alleged anti-competitive practices.

Alex Haffner, a competition partner at Fladgate, said: "This announcement was wholly expected – ever since the Digital Markets, Competition and Consumer (DMCC) Act 2024 was passed into legislation, it was clear that Big Tech would fall under the CMA's regulatory microscope. It also replicates the approach taken by the EU Commission to the equivalent EU legislation over the past 12 months.

"What is more interesting is how this fits into the current sea change which is engulfing the broader organization of the CMA and in particular the very clear steer it is getting from central government to ensure that regulation is consistently applied with its pro-growth agenda. We can expect this to feature heavily once the CMA gets its teeth stuck into the specifics of the DMCC regime and its dealings with the tech companies involved." ®

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