UK’s Competition and Markets Authority (CMA) has proposed giving Apple and Google a new legal status called ‘Strategic Market Status’ (SMS) for their control over mobile platforms, including operating systems, app stores, and web browsers. This proposal follows an investigation launched under the UK’s new Digital Markets, Competition and Consumers Act (which came into effect on January 1, 2025).
If the designation is confirmed, it would give the CMA special powers to set rules for how these companies operate in order to improve competition. A final decision on the designation is due by October 22, 2025.
Notably, the CMA launched the investigation earlier this year to assess whether Apple and Google’s dominance in mobile ecosystems is harming developers, consumers, and innovation. The regulator found that both companies hold powerful positions in the UK mobile market. According to the CMA, around 90% to 100% of the country’s mobile devices currently run on their platforms. Their influence extends across operating systems, app distribution, web browsers, and digital payment systems.
The regulator concluded that this level of control allows these tech giants to set terms that often limit choice, raise costs for users and developers, and make it difficult for rivals to compete.
One of the CMA’s main concerns is how Apple and Google run their app stores. The regulator stated that developers face unclear rules and delays when submitting apps. It also found that app store searches often favour the companies’ own apps. Meanwhile, another critical issue is in-app payments. These companies require developers to use their payment systems and pay up to 30% in fees, while blocking them from offering cheaper payment options.
The regulator also pointed out problems with how the companies restrict app installation and access to certain features. For example, Apple does not allow users to install apps from outside the App Store (a process known as sideloading). Additionally, the investigation raised concerns about limited access to device features and software tools. Particularly, Apple was found to limit third-party apps from fully integrating with devices like the Apple Watch or using features like its NFC chip (which is needed for services like tap-to-pay). The CMA is also looking into how Apple and Google use default settings to keep users within their ecosystems, like pre-setting browsers or search engines.
The latest move becomes even more noteworthy as the SMS framework also gives the CMA the authority to impose significant penalties for non-compliance, up to £300,000 per day or 10% of a company’s global revenue. The regulatory pressure in the UK is not new for these US-based tech giants. For example, in April 2025, Google faced a £5 billion lawsuit over its dominance in search ads, followed by a £25 billion claim in May accusing it of inflating ad prices through default search deals and pricing control. Similarly, at the start of this year, Apple faced a £1.5 billion UK lawsuit over alleged anti-competitive practices in its App Store.
