The United Kingdom’s Competition and Markets Authority (CMA) announced on Wednesday that Apple and Google will face enhanced regulatory oversight for their mobile platforms. This decision, following a nine-month investigation, designates the two tech giants as holding ‘strategic market status’ (SMS), enabling the CMA to enforce stricter rules aimed at fostering competition and innovation. The move mirrors the European Union’s Digital Markets Act, which imposes significant financial penalties for non-compliance. The CMA highlighted that Apple’s iOS and Google’s Android dominate the UK mobile market, with nearly all devices pre-installed with one of these operating systems. Their app stores and browsers also hold leading positions, potentially stifling competition. Under the SMS designation, the CMA can mandate changes to how these platforms operate, offering consumers greater choice. Both companies criticized the decision, with Google labeling it ‘disappointing, disproportionate, and unwarranted,’ while Apple warned it could lead to weaker privacy, delayed updates, and a fragmented user experience. The CMA’s announcement follows Google’s recent SMS designation for its dominance in online search, with ongoing consultations on specific rules. Google has also cautioned that unfavorable regulations could hinder new product launches in the UK, despite its recent £5 billion ($6.7 billion) investment in the country’s AI sector. Both companies employ thousands in the UK, with Google employing over 7,000 and Apple nearly 8,000.
