According to a Reuters report, the UK’s Competition and Markets Authority (CMA) is preparing to assign Strategic Market Status (SMS) to Apple and Google by 22 October, a move that would bring tighter regulation over their control of the UK’s mobile ecosystems.
This follows a detailed inquiry into the mobile browser and app distribution markets, which concluded that Apple and Google’s influence is stifling innovation and limiting consumer choice.
The SMS designation will legally empower the CMA to enforce rules that prevent either company from abusing its market power.
The move marks a significant shift in the UK’s regulatory approach, targeting two firms that jointly control almost the entire mobile browser space through Safari and Chrome.
CMA outlines roadmaps for intervention
The regulator’s investigation, launched in response to concerns about anti-competitive behaviour in mobile ecosystems, found that Apple and Google’s control over operating systems, app stores, and browsers created structural barriers for competitors and app developers.
Apple’s Safari is the default and only browser engine permitted on iPhones, while Google’s Chrome dominates Android devices.
Together, they hold more than 90% of the UK mobile browser market, making alternatives difficult to access and less viable for developers.
Following these findings, the CMA published parallel roadmaps on 24 April 2024, setting out potential further actions.
These include ensuring users can uninstall default apps, promoting greater browser competition, and enabling easier access to alternative app stores and web technologies.
By designating SMS, the CMA gains the ability to impose “conduct requirements” that can force companies to behave in a manner that supports fair competition, such as requiring them to provide access to key features or data, or to allow interoperability with third-party software.
Apple and Google reject findings ahead of final decision
Both companies issued responses disputing the CMA’s proposals.
Apple raised concerns that the proposed rules could compromise the privacy and security features built into iOS, features it claims are key to user trust.
Google, meanwhile, said the designation would risk stalling innovation and growth in the UK tech sector.
Despite this pushback, the CMA confirmed that its decision will be finalised by 22 October 2024.
The final determination will consider stakeholder feedback, but the CMA has made it clear that regulatory action is necessary to correct the current imbalance.
If SMS status is confirmed, Apple and Google would join a list of firms facing ongoing behavioural scrutiny and mandatory compliance obligations in the UK, mirroring steps taken by the EU under its Digital Markets Act.
Strategic market status would reshape app and browser competition
Under the proposed framework, Apple and Google would need to ensure app developers have fairer access to mobile platforms and can operate without being forced into restrictive agreements.
This could include relaxing rules around in-app payments, allowing rival browser engines, and ensuring transparency in ranking algorithms within app stores.
While the CMA says its intention is to boost innovation and user experience, the designation could also influence how global tech companies operate in the UK.
Developers may see new opportunities in areas previously restricted, such as gaming apps that rely on non-native browser engines or services that use alternative payment providers.
The CMA’s current move stems from the broader Digital Markets, Competition and Consumers Bill, which passed into law earlier in 2024.
The bill aims to ensure a more dynamic digital economy by giving regulators teeth against entrenched digital gatekeepers.
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