The UK’s Competition and Markets Authority (CMA) has proposed assigning “strategic market status” (SMS) to Apple and Google for their control of UK mobile ecosystems, marking the first use of powers granted under the Digital Markets, Competition and Consumers Act (DMCC) 2024.
Published on 23 July, the CMA’s provisional designation opens an eight-week consultation, with a final decision expected by 22 October 2025. If confirmed, both firms would face tailored conduct rules — and potential fines of up to 10% of global turnover — targeting app store practices, payment restrictions, browser defaults, and developer access.
“This is about making sure UK consumers and businesses benefit from more competitive and open mobile platforms,” said Sarah Cardell, chief executive of the CMA. “The actions we propose are targeted and proportionate.”
The UK’s app economy accounts for around 1.5% of GDP and supports 400,000 jobs. Apple and Google collectively control 90–100% of the UK smartphone market. The CMA’s investigation highlights concerns about opaque app review processes, self-preferencing, steering bans on external payments, and default software lock-ins — such as Safari on iOS and Chrome on Android.
Apple has warned the proposals may “undermine privacy, security and our ability to innovate,” cautioning against rules that could force it to open proprietary systems or expose its technology to rivals. Google has called the proposal “disappointing and unwarranted,” arguing that any regulation must be “evidence-based and proportionate.”
The regulator’s draft roadmaps suggest initial measures such as setting service-level targets for app reviews, mandating steering rights for developers, improving browser choice prompts, and enabling wallet and smartwatch interoperability. It has also signalled future focus areas, including AI assistants and default search engine arrangements.
Industry responses have been mixed. Epic Games welcomed the proposal but criticised the delay in mandating third-party app stores, calling it “a half-time orange, not the final whistle.” Others, including the App Association, have warned against a “security-light sideloading free-for-all.”
Legal analysts say the CMA is pursuing a case-by-case approach, contrasting with the EU’s broader Digital Markets Act. The UK designation, if confirmed, would last for up to five years, with the potential for enforcement at any point in that period.
