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The UK has proposed giving the companies “Strategic Market Status” to prevent anti-competitive practices.
Apple and Google will likely be required to comply with the UK’s competition legislation, the Digital Markets, Competition and Consumers Act (DMCCA), as it applies to mobile platforms.
The UK’s competition authority has proposed giving the tech giants “Strategic Market Status,” which means they would be subject to bespoke conduct requirements designed to curb anti-competitive practices. Apple and Google hold an “effective duopoly,” with between 90% and 100% of all UK smartphones running on iOS or Android.
On Jan. 23, the Competition and Markets Authority (CMA) launched parallel investigations into the mobile ecosystems of Google and Apple, including the companies’ operating systems, app stores, and default browsers, to see if they have disproportionate influence over the market and warrant Strategic Market Status.
It identified concerns that the companies’ app review processes lacked transparency and predictability, resulting in delayed or failed launches. The CMA also found that app store search rankings could deprioritise third-party apps. Additionally, Apple and Google may discourage developers from offering alternative payment options for in-app purchases by using “choice architecture,” such as default settings that favour their own services, and by restricting interoperability for third-party wearable devices.
“Apple and Google’s mobile platforms are both critical to the UK economy – playing an important role in all our lives, from banking and shopping to entertainment and education,” Sarah Cardell, Chief Executive of the CMA, said in a statement. “But our investigation so far has identified opportunities for more innovation and choice.”
A final decision on whether Google and Apple will receive Strategic Market Status will be made by Oct. 22. If they do, the CMA may recommend that Apple and Google follow a roadmap of potential actions during the first half of a designation period, which could include:
They also want to ensure that there are no barriers that could prevent developers from competing with Apple and Google in AI services, such as voice assistants. “The targeted and proportionate actions we have set out today would enable UK app developers to remain at the forefront of global innovation while ensuring UK consumers receive a world-class experience,” Cardell said.
If either company is designated with SMS, the CMA will update the roadmap in the first half of 2026.
“We’re concerned the rules the UK is now considering would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors,” an Apple spokesperson told the BBC. “We will continue to engage with the regulator to make sure they fully understand these risks.”
In a statement, Google’s Head of Competition, Oliver Bethell, said the announcement was “disappointing and unwarranted,” arguing that “Android has saved developers over one million days they would otherwise spend adapting to different operating models for each smartphone.”
However, Epic Games, the creator of Fortnite, says that the UK has chosen “not to prioritize opening the mobile ecosystem to alternative app stores” within its roadmaps, and therefore is insufficient to its goals of dismantling the duopoly. Because Apple retains such control, it says it still cannot bring its own app marketplace, Epic Games Store, and therefore Fortnite, to iOS in the UK.
The EU is trying to address many of these same concerns with its Digital Markets Act (DMA). It has fined Apple €500 million for not allowing app developers to freely steer users toward external purchasing options, and is demanding that it enhance interoperability between iOS, iPadOS, and third-party devices.
Apple is appealing its fine and has relentlessly pushed back against interoperability demands, arguing they threaten user security. Nevertheless, it has made some DMA-driven changes to give users more control over default apps, browser choice, and pre-installed apps.
The DMCCA, which took effect on Jan. 1, is designed to regulate the behaviour of major digital firms with significant market power in the UK. It grants the CMA powers to impose unique conduct requirements on tech companies with Strategic Market Status, reminiscent of the “gatekeeper” organisations that must abide by the EU’s DMA.
To qualify for SMS, a firm must demonstrate substantial market power in digital services, hold strategic significance, and generate more than £25 billion globally or a turnover of more than £1 billion within the UK.
While SMS status does not imply wrongdoing, the CMA argues that adhering to conduct requirements will help ensure these companies cannot engage in anti-competitive practices. The agency also has the power to launch “pro-competition interventions” to mitigate market distortions caused by dominant firms.
The SMS designation process involves a formal investigation that typically takes about nine months.
In June, after a concurrent investigation, the CMA proposed giving Google Strategic Market Status to curb its dominance in search and search advertising services. It could be forced to rank rival services — like shopping or travel comparison sites, or even other search engines — more fairly and transparently.
Fiona Jackson is a news writer who started her journalism career at SWNS press agency, later working at MailOnline, an advertising agency, and TechnologyAdvice. Her work spans human interest and consumer tech reporting, appearing in prominent media outlets such as TechHQ, The Independent, Daily Mail, and The Sun.
