On October 22, 2025, the United Kingdom’s Competition and Markets Authority (CMA) officially designated Apple and Google’s mobile platforms as having Strategic Market Status (SMS). This classification grants the CMA the authority to implement specific measures aimed at fostering competition within the mobile ecosystem.
The CMA’s decision follows a comprehensive investigation initiated in January 2025, which scrutinized the dominance of Apple and Google in the UK’s mobile operating systems, app stores, and web browsers. The findings revealed that these companies hold a substantial share of the market, effectively creating a duopoly that could potentially stifle innovation and limit consumer choice.
Will Hayter, Executive Director for Digital Markets at the CMA, emphasized the significance of this move, stating, Apple and Google’s mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms’ rules may be limiting innovation and competition.
Implications of the Strategic Market Status Designation
The SMS designation empowers the CMA to enforce targeted interventions to promote a more competitive environment. Potential measures include:
– Allowing App Developers to Inform Users of Alternative Payment Options: Developers could be permitted to direct users to payment methods outside of Apple and Google’s proprietary systems, potentially reducing the commission fees imposed by these platforms.
– Enhancing Interoperability: The CMA may require improved compatibility between different digital wallets and smart devices, facilitating a more seamless user experience across various platforms.
– Ensuring Fair App Review Processes: The regulator could mandate more transparent and equitable app review procedures, preventing Apple and Google from leveraging their positions to favor their own services.
Responses from Apple and Google
Both tech giants have expressed concerns regarding the CMA’s decision. Apple warned that such regulations could compromise user privacy and security, potentially delaying the rollout of new features. The company stated, We’ve seen the impact of regulation on Apple users in the EU, and we urge the UK not to follow the same path.
Google criticized the designation as disappointing, disproportionate, and unwarranted. Oliver Bethell, Google’s Senior Competition Director, remarked, The CMA’s next steps will be crucial if the UK’s digital markets regime is to meet its promise of being pro-growth and pro-innovation.
Industry Perspectives
The CMA’s move aligns the UK with other jurisdictions, such as the European Union, which have implemented similar regulations to curb the dominance of major tech companies. The EU’s Digital Markets Act, for instance, targets gatekeeper platforms to ensure fair competition.
However, some industry representatives have raised concerns about the potential impact of the SMS designation. Matthew Sinclair, Senior Director of the Computer and Communications Industry Association (CCIA), cautioned that the opaque designation process could deter innovation and investment in the UK. He emphasized the need for the CMA to adopt a careful approach when considering conduct requirements to prioritize investment and growth.
Potential Outcomes and Future Developments
While the CMA has not found any immediate wrongdoing by Apple and Google, the SMS designation allows the regulator to consider proportionate and targeted interventions to ensure that these platforms remain open to effective competition. This could lead to significant changes in how Apple and Google operate their mobile ecosystems in the UK.
The CMA’s decision reflects a growing global trend of increased scrutiny and regulation of major tech companies to promote fair competition and protect consumer interests. As the situation develops, it will be crucial to monitor how these interventions impact the mobile market landscape and whether they achieve the desired outcomes of fostering innovation and enhancing consumer choice.
