The UK’s Competition and Markets Authority (CMA) has unveiled plans to designate Apple and Google with Strategic Market Status (SMS) for their mobile platforms, paving the way for far-reaching reforms aimed at stimulating innovation, consumer choice, and fair competition in the UK’s app economy.
The proposed designations come alongside detailed roadmaps of potential regulatory interventions intended to rebalance a market long dominated by the tech giants. Together, Apple’s iOS and Google’s Android account for nearly 100% of mobile devices in the UK.
“The digital economy plays a crucial role in powering UK innovation and growth,” said CMA Chief Executive Sarah Cardell. “Our investigation has identified areas where greater competition could unlock new opportunities for UK developers and deliver better outcomes for consumers.”
UK’s App Economy at Stake
The UK boasts the largest app economy in Europe, contributing an estimated 1.5% of GDP and supporting around 400,000 jobs. The sector plays a key role in areas such as financial services and gaming, with mobile gaming alone bringing in £2 billion annually. Fintech has attracted over £18 billion in inward investment over the past three years.
But developers have raised concerns about the barriers posed by Apple’s and Google’s control over app distribution. These include opaque and inconsistent app review processes, high in-app purchase commissions (up to 30%), limited access to core functionality, and restrictions on promoting alternative payment options.
The CMA’s findings suggest such practices may be limiting innovation, distorting consumer choice, and stifling competition across multiple industries that depend on mobile technology.
Key Areas of Proposed Action
The CMA’s roadmaps lay out proposed actions across several fronts, including:
- App Stores: Ensuring fair and transparent app review processes and search rankings, and allowing developers to steer users outside app stores for purchases.
- Interoperability: Addressing restrictions that limit developers’ access to key mobile features—especially those that affect emerging technologies like smartwatches and digital wallets.
- Consumer Choice: Tackling “choice architecture” that gives undue prominence to the firms’ own services and limits user control.
- AI Services: Ensuring fair access and innovation opportunities in the rapidly growing field of AI-powered mobile services, including voice assistants.
Next Steps
The CMA is now seeking feedback on its proposed SMS designations and accompanying roadmaps. A final decision is expected by October 22, 2025. If SMS status is confirmed, the CMA will gain new powers under the UK’s digital markets regime to impose tailored interventions, subject to further consultation and legal safeguards.
The UK joins a growing global movement to rein in dominant digital platforms. While the CMA emphasized that an SMS designation does not imply wrongdoing by Apple or Google, it said action is needed to prevent harm and unlock long-term economic potential.
“Time is of the essence,” said Cardell. “As regulators worldwide take steps to ensure fairer digital markets, the UK must act decisively to remain at the forefront of innovation and consumer protection.”
Source: https://www.gov.uk/government/news/cma-proposes-action-to-drive-more-competition-on-mobile-platforms
