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UK Targets Apple and Google’s Smartphone Dominance with New Competition Powers

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Britain’s competition regulator has designated Apple and Google as firms with “strategic market status” (SMS), giving it new powers to demand changes to how the two tech giants operate their smartphone ecosystems.

The Competition and Markets Authority (CMA) said on Wednesday that the move would allow it to introduce targeted interventions to promote innovation and competition in the mobile market, where the dominance of Apple’s iOS and Google’s Android platforms gives them vast control over app stores, browsers, and digital services.

The CMA said the designations were not findings of wrongdoing but would enable oversight of both firms’ practices, such as app store restrictions and payment rules that may limit competition.

The decision aligns Britain with other major economies — including the United States, European Union, and Japan — that have been tightening regulation on the two companies’ market power.

Apple warned that copying the EU’s interventionist approach could “undermine privacy and security” for users, while Google described the decision as “disappointing and unwarranted”, urging the regulator to ensure its actions remain “pro-growth and pro-innovation.”

Nearly all smartphones in the UK run on either Apple or Google systems, with both firms controlling access to their platforms through app store policies and in-house browsers.

Tom Smith, a former CMA director, said the new powers could lead to fairer conditions for app developers — including the right to inform users of cheaper deals outside official app stores, similar to measures adopted in the U.S.

However, industry trade body CCIA cautioned that the “opaque” SMS process might deter tech investment, urging regulators to balance oversight with economic growth.

The CMA emphasized that any future interventions would be “proportionate and targeted” to ensure competition flourishes without stifling innovation in the UK’s tech sector.

UK moves to curb Google’s search dominance under new Big Tech powers

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Britain’s competition regulator has designated Google as having strategic market status in online search — a landmark ruling that gives the Competition and Markets Authority (CMA) sweeping new powers to reshape how the tech giant operates in the UK.

The CMA said Google controls over 90% of all UK search traffic, cementing a dominant position in both search and search advertising. The designation, announced Friday, does not imply wrongdoing but allows the regulator to intervene directly to ensure fairer competition and impose fines for non-compliance.

The CMA outlined potential changes earlier this year, including fairer ranking systems, easier switching to alternative search engines, and greater publisher control over how their content is used in AI-generated responses. These measures could particularly affect Google’s AI Overviews and AI Mode features, though its Gemini AI assistant remains outside the current scope.

Google’s Senior Director for Competition, Oliver Bethell, argued the proposals “would inhibit UK innovation and growth” at a time of “profound AI-based innovation.” The company recently announced a £5 billion investment in Britain.

The ruling marks the CMA’s first use of its expanded Big Tech authority, introduced to address the dominance of firms like Google, Apple, and Amazon. The regulator’s second probe—into mobile operating systems—could also lead to another designation targeting Android.

The move follows mounting global scrutiny: the EU fined Google $3.45 billion for antitrust violations in ad tech last month, while U.S. regulators are pressing to break up parts of its advertising empire.

Competition lawyer Tom Smith, a former CMA director, said the decision could rebalance the market by “giving website operators more control over how their content is used for AI training,” curbing Google’s advantage in artificial intelligence.

Amazon Commits to Tougher Measures Against Fake Reviews After UK Investigation

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Amazon has agreed to implement stronger actions to combat fake reviews on its platform, following a four-year investigation by the UK’s Competition and Markets Authority (CMA). The deal includes new enforcement powers that allow Amazon to sanction British businesses found using deceptive tactics to boost product ratings, as well as measures to detect and remove fraudulent content more efficiently.

The CMA said on Friday that Amazon’s commitments also address concerns about “catalogue abuse” — a practice where sellers attach their products to highly rated but unrelated items in order to mislead shoppers and inflate rankings. In severe cases, businesses violating these rules could face bans from Amazon’s platform altogether. Individual users who post fake reviews may also be prohibited from submitting further reviews.

According to the CMA, approximately 90% of consumers rely on online reviews when making purchasing decisions, making the integrity of reviews crucial for fair competition and consumer trust. Amazon’s new obligations will include robust systems to identify and eliminate manipulated reviews and enforce stricter penalties for offenders.

The regulator began its investigation into Amazon and Google in 2021 over potential breaches of consumer protection law. In January, Google also made similar commitments to improve the reliability of online reviews. CMA chief executive Sarah Cardell praised Amazon’s actions, stating, “These new commitments matter and help set the standard.”

The CMA has recently been granted new enforcement powers allowing it to independently determine if consumer law has been broken. It can now issue fines and compel businesses to improve their practices without needing to go through lengthy court proceedings.

In parallel, the CMA is conducting a broad assessment of online review platforms as part of its ongoing work to ensure compliance with its newly updated reviews guidance issued in April.