- The CMA proposes stricter rules to curb Apple and Google’s mobile ecosystem dominance in the UK, targeting their app stores and default settings.
- The move aims to boost innovation and consumer choice, with a final decision on Strategic Market Status due by 22 October.
What happened: CMA challenges tech giants’ mobile control
The UK Competition and Markets Authority (CMA) proposes tougher regulations on Apple and Google to address their dominance in mobile ecosystems. The CMA suggests assigning both companies Strategic Market Status (SMS) for their mobile platforms, including operating systems, app stores, browsers, and engines. This follows investigations launched in January to examine their market control.
The CMA highlights concerns over high in-app purchase commissions, preferential treatment of in-house apps, and default settings that favour the companies’ services. Around 90 to 100 per cent of UK mobile devices run on Apple or Google’s platforms, forming a near-duopoly. The CMA seeks feedback from both companies before finalising the SMS designation by 22 October. Apple and Google have expressed concerns, with Google calling the move “disappointing and unwarranted” and Apple noting potential impacts on UK consumers.
Also Read: Transforming big tech: UK’s CMA empowers rivals with data access
Also Read: Big Tech faces tougher UK scrutiny with new competition rules
Why it’s important
The CMA’s push to regulate Apple and Google’s mobile dominance signals a bold step towards fostering innovation and consumer choice in the UK’s tech landscape. These companies control nearly every smartphone and tablet, shaping how apps are discovered and used.
Their app store policies, often criticised for high fees—up to 30 per cent on in-app purchases—limit developers’ profits and stifle competition, potentially raising costs for users. Globally, similar actions are underway: the EU’s Digital Markets Act and US lawsuits target Big Tech’s market grip. This UK move could empower smaller developers, encouraging innovative apps that challenge the status quo.
