UK Expands Oversight of Apple and Google Over Mobile Ads and Digital Market Dominance

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What’s Going On: CMA’s Crackdown & Enhanced Powers

  1. New Investigation of Apple & Google’s Mobile Ecosystems
    • In January 2025, the CMA launched investigations into both Apple and Google’s “mobile ecosystems” — specifically focusing on:
      • Operating systems (iOS, Android)
      • App stores (App Store, Google Play)
      • Mobile browsers / browser engines on smartphones/tablets (GOV.UK)
    • This is under the UK’s Digital Markets, Competition and Consumers Act (DMCCA), which gives the CMA new, stronger powers to regulate large digital firms. (GOV.UK)
  2. Strategic Market Status (SMS) Designation
    • On 22 October 2025, the CMA officially confirmed that Apple and Google are being designated with Strategic Market Status (SMS) for their mobile platforms. (GOV.UK)
    • The CMA found that both companies have “substantial, entrenched market power” and are strategically significant in the UK mobile space. (GOV.UK)
    • Importantly: SMS designation is not a finding of wrongdoing. Rather, it gives the CMA legal authority to impose targeted and proportionate interventions. (GOV.UK)
  3. Proposed Interventions to Boost Competition
    • As part of its roadmap, the CMA has suggested a range of possible measures: (GOV.UK)
      • Make it easier for users to “steer” away from Apple’s / Google’s app store to alternative payment methods or app storefronts. (The Guardian)
      • Enforce fairer app‑store review processes, more transparency, or more choice over pre-installed apps. (The Guardian)
      • Ensure that users have “genuine choice” over important system-level functions (e.g., digital wallets) on their devices. (The Guardian)
    • The CMA plans to consult on these potential changes and begin implementing interventions starting in 2026. (GOV.UK)
  4. Economic & Strategic Importance
    • According to the CMA, the UK app economy is significant:
      • It contributes roughly 1.5% of UK GDP. (GOV.UK)
      • It supports around 400,000 jobs in the UK. (GOV.UK)
    • The CMA argues that Apple and Google’s dominant mobile platforms may be limiting innovation, raising barriers for app developers, and restricting consumer choice. (GOV.UK)

Why This Matters: Key Implications

  • For App Developers:
    • They may gain more freedom: less restrictive app store policies, possibly lower or more flexible fees, and more ability to direct users to external payment / purchase options.
    • Increased choice could lower barriers for startups or smaller developers who currently lose out because of Apple’s or Google’s tight control.
  • For Consumers:
    • More power to choose how they install apps or where they make purchases (not just through the default store).
    • Potentially better privacy and competition, especially if alternative browsers or wallet/payment options become more viable.
  • For Apple & Google:
    • They face the real risk of new regulatory rules that could force them to change how their platforms operate.
    • But designation as SMS doesn’t guarantee immediate penalties — instead, it opens the door to tailored interventions.
    • They may argue that too much regulation could hurt innovation, security, or the user experience.
  • For the UK Digital Market:
    • The CMA’s move is part of a broader global trend to regulate Big Tech (similar moves in EU, US).
    • It could lead to a more “open” app ecosystem in the UK, benefiting competition and potentially lowering costs for users.
    • It reinforces the UK’s commitment to strong digital market regulation via the DMCCA.

 Comments & Reactions

  • Will Hayter (CMA, Executive Director for Digital Markets):

    “Apple and Google’s mobile platforms are used by thousands of businesses … but the platforms’ rules may be limiting innovation and competition.” (GOV.UK)

  • Sarah Cardell (CMA CEO):

    “Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services … on Apple’s and Google’s platforms.” (GOV.UK)

  • Apple’s Response:
    • Apple warns that potential regulation could “undermine privacy and security protections … and risk delayed access to new features.” (Forbes)
  • Google’s Response:
    • Google described the CMA’s SMS decision as “disappointing, disproportionate and unwarranted.” (The Guardian)
    • A Google representative (Oliver Bethell) argued that the CMA’s new powers should be “highly targeted” and not stifle innovation. (Forbes)

 Bottom Line

  • The CMA is significantly expanding its oversight of Apple and Google under the UK’s new digital markets regime.
  • By designating both as strategic market status in mobile platforms, the CMA now has the tools to mandate reforms that could open up app stores, change in‑app purchasing rules, and increase user choice.
  • This is not yet a punishment — but it’s a major regulatory shift: Apple and Google may soon face specific conduct requirements to make their ecosystems more competitive.
  • Good question. Here are case-style examples (based on real CMA investigations) and key comments / reactions showing how the UK CMA’s expanded oversight of Apple and Google in mobile markets is unfolding — and what the possible outcomes might be.

     Case Studies & Key Scenarios

    1. CMA Opens Dual Strategic Market Status (SMS) Investigations
      • In January 2025, the CMA launched investigations into both Apple and Google’s “mobile ecosystems,” specifically their operating systems, app stores, and mobile browsers. (GOV.UK)
      • Purpose: To examine how their dominance might restrict innovation, raise barriers for app developers, and limit consumer choice. (CNBC)
    2. App Developer & Consumer Engagement
      • The CMA held a workshop for app developers (March 2025) to gather input on barriers to innovation, app store rules, and what interventions might help. (GOV.UK)
      • It also ran a consumer-survey consultation to understand how mobile platform rules affect users. (GOV.UK)
      • These steps feed into a roadmap of possible measures the CMA may impose if SMS is confirmed. (GOV.UK)
    3. Final SMS Designation (October 2025)
      • On 22 October 2025, the CMA officially designated both Apple and Google with Strategic Market Status for their mobile platforms. (GOV.UK)
      • The CMA concluded that both companies have “substantial, entrenched market power” in:
        • Their mobile operating systems (iOS / Android)
        • App distribution (App Store / Google Play)
        • Mobile browsers and browser engines (Safari / WebKit; Chrome / Blink) (GOV.UK)
      • Importantly: SMS status is not a finding of wrongdoing. Rather, it gives the CMA authority to impose specific, proportionate interventions. (TechCrunch)
    4. Proposed Interventions
      • The CMA’s roadmap includes possible regulatory steps: (GOV.UK)
        • Allowing app developers to steer users to external payment options / app stores (i.e., not forcing them into Apple’s or Google’s store) (Encyclopedia Britannica)
        • Increasing transparency and fairness in how app stores review apps, rank apps, and handle in‑app payments / commissions. (Fortune)
      • These changes are intended to unlock competition and make the mobile ecosystem more open to innovation. (GOV.UK)
    5. Browser Innovation Concerns
      • The CMA’s probe also highlights how mobile browsers may be constrained: Apple’s Safari and Google’s Chrome have dominant positions, limiting alternatives. (TechCrunch)
      • According to the CMA, this dominance may stifle “rival businesses” that want to build new types of browsers, web apps, or other mobile services. (The Guardian)

     Key Comments & Reactions

    • Will Hayter, Executive Director (Digital Markets, CMA):

      “Apple and Google’s mobile platforms are used by thousands of businesses … but the platforms’ rules may be limiting innovation and competition.” (TechCrunch)

      • He emphasized that the app economy is significant for the UK’s economy: worth ~1.5% of GDP and supporting 400,000 jobs. (GOV.UK)
    • Sarah Cardell, CMA CEO:

      “More competitive mobile ecosystems could foster new innovations … and open opportunities for businesses to deliver a wider range of apps, services, and content.” (Fortune)

    • Google’s Response:
      • Google criticized the SMS decision, calling it “disappointing, disproportionate, and unwarranted.” (Encyclopedia Britannica)
      • Google warned that overly aggressive regulation could stifle growth, arguing for “pro‑growth and proportionate” rules. (Encyclopedia Britannica)
    • Apple’s Response:
      • Apple said it was concerned about privacy, security, and user experience, cautioning that new rules could undermine these. (Encyclopedia Britannica)
      • It also expressed worry that intervention could “jeopardise the UK developer economy.” (The Guardian)
    • CMA Inquiry Chair (Margot Daly) on browser dominance:

      “The mobile browser duopoly held by Apple and Google constrains competition and may be hindering innovation.” (quoted in TechCrunch) (TechCrunch)

     Key Implications of This Crackdown

    • For App Developers: They may gain more freedom to distribute apps, choose payment methods, or bypass app store monopolies, which could lower costs and increase innovation.
    • For Consumers: Greater choice in app stores, payments, or even browsers could lead to better experiences, more innovation, and possibly lower prices.
    • For Apple & Google: They may be forced to make structural changes, like allowing alternative payment channels or loosening control over app distribution.
    • For the UK Market: This is a significant test of the DMCCA (Digital Markets, Competition and Consumers Act). If the CMA follows through, it could reshape how Big Tech competes in mobile in the UK.
    • Global Context: The UK’s move mirrors other jurisdictions (EU, US, etc.) pushing harder on tech platform regulation — and could influence regulatory strategies elsewhere.

     

 

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