Apple Rejects UK Competition Authority’s “Strategic Market Status” Rules

us lawmakers warn uk about apple backdoor request

The United Kingdom’s Competition and Markets Authority (CMA) has formally designated Apple and Google as having “strategic market status,” placing both firms under new regulatory oversight. The rules stem from the Digital Markets, Competition and Consumers Act (DMCC), which shares similarities with Europe’s Digital Markets Act (DMA). Apple has strongly objected, warning that the changes threaten users, developers, and its own ability to protect data.

Earlier this year, the CMA reopened investigations into Apple and Google over anticompetitive practices. The first probe into Apple was abandoned in 2023 after the regulator missed a filing deadline. This second attempt cites the companies’ entrenched market power and their control of mobile ecosystems. Under the DMCC, both firms will face restrictions on how they run app stores, use data, and enforce payment systems.

Apple’s Response

Apple dismissed the CMA’s proposals as harmful. The company argued the new rules “undermine the privacy and security protections our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors.” It also criticized anti-steering provisions, which would allow developers to direct users to alternative payment options, claiming these “open the door to scams and threaten the security of users”.

Apple pointed to its record in Europe under the DMA, where the company delayed or withheld new features because of compliance requirements. It warned the UK could face similar disruptions if the CMA proceeds.

Apple is not alone in restricting services in Europe. Google, Meta, Anthropic, and OpenAI have all delayed or limited product launches in response to EU rules over data and competition concerns.

The CMA responded by rejecting Apple’s characterization of the UK’s approach. According to the regulator, the proposals are narrower than the EU’s DMA and aim to support innovation. For example, it highlighted that interoperability rules would target specific areas, such as digital wallets and smartwatches, to allow UK developers to build new apps without undermining security, privacy, or intellectual property.

The CMA also argued that competition on mobile platforms is necessary because Apple and Google run “around 90-100% of UK mobile devices,” creating what it called an “effective duopoly.” It said the goal is to reduce dominance and increase choice for users and developers. The final decision on enforcement is expected in October.

The debate reflects growing international friction over tech regulation. While UK officials say the measures will strengthen competition, Apple insists they risk weakening security and giving rivals free access to its technology. The standoff now moves toward a critical phase as regulators prepare their next steps.

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