🚨 UK Regulator Takes On Apple & Google: App Store, Browser Reforms Loom!
UK Regulators Target Apple and Google Over App Store and Mobile Ecosystem Control
In a major move to reshape the digital landscape, the UK’s Competition and Markets Authority (CMA) has taken decisive action against Apple and Google, challenging their dominance in the mobile technology sector. On Wednesday, the CMA proposed labelling both tech giants with a new status called “Strategic Market Status” (SMS) — a powerful regulatory tool aimed at curbing anti-competitive practices in digital markets.
This decision follows an in-depth investigation launched in January, focusing on how Apple and Google control key parts of the mobile ecosystem, including their operating systems, app stores, and web browsers. The CMA’s goal is to promote fair competition, protect consumers, and open doors for smaller developers and rival companies.
What Is Strategic Market Status?
Strategic Market Status is assigned to companies that hold significant and lasting power in a particular digital market. Once designated, these firms can be legally required to change or stop certain business practices that harm competition.
With Apple’s iOS and Google’s Android controlling over 99% of the UK smartphone market — 38% and 61% respectively, according to Kantar — the CMA argues that both companies have entrenched dominance. This gives them outsized influence over how apps are developed, distributed, and monetized.
By granting SMS status, the CMA gains authority to enforce binding remedies and ensure transparency, fairness, and openness in digital platforms.
Key Concerns Raised by the CMA
The investigation zeroed in on three major areas where Apple and Google may be stifling competition:
Barriers to Entry for Competitors
The CMA questioned whether it's too difficult for rival app stores, browsers, or services to operate fairly on iOS and Android devices. High control over device functionality and app approval processes could limit innovation from smaller players.Self-Preferencing of Own Services
There are concerns that both companies promote their own apps — like Safari and Chrome, or Apple Music and Google Play — ahead of third-party alternatives in search results and default settings, giving them an unfair advantage.Unfair Terms for Developers
App developers have long complained about strict rules, inconsistent app review processes, and opaque algorithms that affect visibility in app stores. The CMA highlighted issues such as:- Sudden app rejections without clear explanation
- Biased app store rankings
- Restrictions preventing developers from informing users about cheaper subscription options outside the app
- Up to 30% commission fees on in-app purchases
Additionally, some developers fear that during the app review process, Apple and Google gain access to sensitive business data, which could potentially be used to benefit their own competing products.
What Changes Is the CMA Demanding?
The CMA has outlined a mix of immediate and long-term reforms it wants Apple and Google to implement:
Immediate Actions:
- Transparent App Review Processes: Both companies must make app approvals fairer, more objective, and easier to understand. This includes explaining delays or rejections and offering a formal channel for developers to appeal decisions.
- Clear App Store Ranking Methods: The CMA wants Apple and Google to publish how apps are ranked in search results, reducing the risk of bias toward their own services.
- Freedom to Promote External Payments: Developers should be allowed to inform users about lower-cost subscription options available directly through their websites, helping users avoid high in-app purchase fees.
- Improved Data Portability: The CMA is pushing for easier ways to transfer personal data between iOS and Android devices, making it simpler for users to switch platforms without losing information.
Long-Term Proposals (Under Review for 2025):
- Allow Alternative App Stores on iOS: The CMA is considering forcing Apple to permit third-party app marketplaces on iPhones and iPads — a significant shift from its current closed model.
- Enable Sideloading: Users may soon be allowed to download and install apps directly from developers’ websites, bypassing the App Store entirely.
These changes mirror similar reforms already underway in the European Union under the Digital Markets Act (DMA).
Apple and Google Push Back
Both companies have strongly opposed the CMA’s proposals, warning of potential risks to user safety and innovation.
Apple stated that the suggested changes could “undermine the privacy and security protections our users expect.” The company argues that its tightly controlled ecosystem protects users from malware and scams. It also expressed concern that being forced to share its technology could benefit foreign competitors at the expense of UK innovation.
“We remain committed to engaging with the CMA to ensure they fully understand the real-world impact of these proposals,” Apple said.
Google, meanwhile, emphasized that Android and Chrome are built on open-source technology, fostering competition and choice. Oliver Bethell, Google’s Senior Director of Competition, called the CMA’s move “disappointing and unwarranted,” stressing that any new rules must be based on solid evidence and not hinder economic growth.
“Android has empowered thousands of UK developers and boosted the digital economy,” Bethell said. “We’ll continue working constructively with the regulator.”
Broader Regulatory Pressure Across Europe
The UK’s actions come amid growing scrutiny of Big Tech across Europe.
- In April 2024, the European Commission fined Apple €500 million for violating the DMA, particularly for restricting developers from guiding users to cheaper payment methods.
- Apple introduced a new fee structure in June to comply but plans to appeal the fine, arguing that the changes compromise security and create confusion for developers.
- Meanwhile, Google faces accusations of favoring its own search services over rivals and blocking developers from promoting better deals outside its Play Store.
- Google is also fighting a separate €4.1 billion antitrust fine from a 2018 case related to Android’s dominance.
What This Means for Consumers and Developers
If the CMA’s recommendations become law, UK users could see:
- More choice in apps and services
- Lower prices due to competition and external payment options
- Easier switching between iPhone and Android
- Greater transparency in how apps are reviewed and ranked
For developers, especially small and independent ones, these changes could reduce reliance on Apple and Google’s platforms, cut distribution costs, and foster innovation.
Final Thoughts
The CMA’s push marks a pivotal moment in the UK’s effort to regulate Big Tech and level the digital playing field. While Apple and Google argue that their models protect users, regulators believe that unchecked power threatens competition and consumer choice.
As the consultation period continues, all eyes will be on how the final SMS rules take shape — and whether the UK will follow the EU in forcing sweeping changes on Silicon Valley giants.
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