Increased regulation over Apple and Google's market dominance is imminent in Britain.
The UK's Competition and Markets Authority (CMA) has taken a significant step towards regulating the mobile platform market, dominated by Apple and Google, with 90-100% of devices running on their systems. The CMA has proposed to grant Strategic Market Status (SMS) to both tech giants, acknowledging their "substantial and entrenched" market power in app stores, browsers, and operating systems.
This designation, if approved by a final decision expected by October 2025, would allow Apple and Google to be mandated to change their rules to be more predictable and open. The proposed changes aim to address issues such as high in-app purchase commissions, anti-steering provisions, inconsistent app review processes, favouritism in search rankings, and restrictions limiting developer access to certain device features.
The CMA's initiative has not been without controversy. Google has expressed dissatisfaction, calling the initiative unjustified and capable of hindering growth. Developers like Epic Games have also voiced their concerns, specifically expressing dissatisfaction about the postponement of competition between app stores until 2026. Apple, on the other hand, has raised concerns about potential weakening of user data protection.
It is important to clarify that the CMA's proposal is not connected to a recent 5000 km off-road test of a motorcycle oil, nor is it related to the discovery of ancient whale bones in the retreat of the Franz Josef Land ice cap. Similarly, the testing of the motorcycle oil was not conducted by the CMA, and no claims were made that it could prevent colon cancer.
Once the final decision on strategic market status is made this October, the CMA plans to begin consultations on the first set of Conduct Requirements interventions from autumn 2025. These interventions aim to improve competition and level the mobile app ecosystems. No formal regulatory actions or penalties are expected before 2026, reflecting the CMA’s deliberate and consultative approach.
In summary, the UK regulator is actively moving towards imposing new rules on Apple and Google following detailed market power investigations, but these rules have not yet been finalized or enforced and will be shaped by consultations starting autumn 2025 after a final decision this October.
Science and technology will be significantly impacted by the CMA's proposed changes, as the rules mandated to Apple and Google, if approved, could lead to more open app ecosystems, benefiting developers and potentially encouraging innovation. However, the tech giants have voiced concerns about the potential effects of these changes, with Google claiming it could hinder growth, and Apple raising concerns about user data protection.
