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