The UK’s competition watchdog has said it will move to impose new rules on Apple and Google after designating them as holding “strategic market status”, a label reserved for firms with entrenched dominance in critical digital markets.
The Competition and Markets Authority (CMA) said the move is aimed at promoting greater competition and innovation in the mobile sector, which it says has become too reliant on the two US tech giants.
The regulator’s investigation, launched in January, found that Apple and Google effectively hold a duopoly over mobile devices in the UK through their iOS and Android operating systems, app stores and browsers. The CMA has now set out “roadmaps” to make changes it says are “proportionate, pro-innovation”, and in the interest of both UK consumers and businesses.
Areas of initial focus include reforming how the companies run their app stores, particularly the fees developers pay and restrictions on in-app payment methods. The CMA also said it will explore whether digital wallets should be opened up to competitors, citing Apple’s restrictions as a potential barrier to financial innovation.
“Apple and Google’s mobile platforms are both critical to the UK economy,” said Sarah Cardell, chief executive of the CMA. “But our investigation has identified opportunities for more innovation and choice. Time is of the essence: as agencies and courts globally take action in these markets, it’s essential the UK doesn’t fall behind.”
However, the watchdog stopped short of more sweeping reforms, such as requiring Apple to allow alternative app stores or third-party payment systems, decisions that have proven controversial elsewhere. These measures have been postponed for further consideration until at least 2026, prompting criticism from industry figures and campaigners.
Tom Smith, a competition lawyer at Geradin Partners and former CMA director, said the watchdog was “ducking major decisions” and risked acting too timidly.
“The CMA is proposing some useful measures, but it’s shying away from actions that would really threaten the entrenched positions of Apple and Google,” he said.
Epic Games CEO Tim Sweeney, whose company has been embroiled in global legal disputes with both tech giants, described the CMA’s position as “surprisingly weak”, comparing the UK app store ecosystem to a “Soviet supermarket”.
He said Fortnite’s return to Apple’s UK App Store, and the launch of Epic’s own mobile store, were now “uncertain”, even as the company prepares to re-enter other markets, including the EU, Brazil, and Japan.
Apple said the proposed rules could “undermine privacy and security”, threatening its ability to protect users and maintain innovation.
“We’re concerned the rules would force us to give away our technology for free to foreign competitors,” a spokesperson said. “We will continue to engage with the regulator to ensure these risks are understood.”
Google, meanwhile, said the CMA’s findings were “disappointing and unwarranted”, arguing that Android is open-source and pro-competitive, with benefits for users and developers alike.
“In 2022, Android generated over £9.9 billion for UK developers and supported more than 457,000 jobs,” said Oliver Bethell, Google’s senior director of competition. “It’s vital that new regulation remains proportionate and doesn’t become a roadblock to UK growth.”
Being designated with strategic market status carries significant regulatory consequences. The designation, which lasts for five years, allows the CMA to enforce strict conduct rules and, in cases of non-compliance, impose fines of up to 10 per cent of global turnover.
The investigation is taking place under the UK’s new pro-competition digital regime, which is part of a wider government initiative to rein in big tech dominance and stimulate growth in UK digital markets.
But the timing of the CMA’s action has drawn scrutiny. The appointment of Doug Gurr, a former Amazon UK executive, as CMA chair earlier this year sparked concerns about independence, with some critics claiming the regulator risked being too soft on big tech. The government has rejected those claims.
The CMA has committed to consulting further before finalising rules, with more detailed proposals expected in 2026. Until then, pressure is likely to mount from developers and consumer advocates who have long argued that the mobile ecosystem is skewed in favour of the dominant gatekeepers.
As the UK joins other global regulators in challenging the dominance of Apple and Google, the success or failure of the CMA’s approach may shape the future of digital market regulation across Europe and beyond.
