Britain is stepping up its regulatory efforts against Big Tech. The Competition and Markets Authority (CMA) has proposed giving Apple and Google a “strategic market status” (SMS), a label reserved for companies with entrenched market dominance and strategic significance in digital markets. This comes as part of the UK’s new Digital Markets, Competition and Consumers Act (DMCC), a law designed to limit monopolistic behavior and open the field for competitors.
If approved, the designation would give the CMA powers to force both companies to alter, or stop, certain business practices that limit competition. That includes Apple and Google’s control over mobile operating systems, app stores, and browsers.
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The UK’s Version of Europe’s Crackdown
The DMCC closely follows the European Union’s Digital Markets Act (DMA), which bans self-preferencing, limits in-app purchase restrictions, and enforces interoperability. Just this week, Reuters reported that EU regulators are likely to accept Apple’s recent App Store adjustments under the DMA. That precedent could shape how Apple responds to UK regulators.
CNBC first reported the CMA’s latest proposal. It highlighted the SMS designation as a powerful tool to address dominant behavior by Apple and Google. The regulator began investigating both companies in January, examining whether their platforms restrict competition or impose unfair terms on developers.
This is the CMA’s second attempt at investigating Apple. The original probe collapsed in 2023 due to a procedural delay. This time, the regulator is using the structured path provided by the DMCC.
What the CMA Found
At the center of the probe are several key questions. Do Apple and Google prevent rival browsers and app stores from gaining ground? Are developers being forced into unfair agreements just to reach mobile users? Is sensitive business data being exposed during the app review process?
The CMA says it has heard repeated complaints from businesses and consumers alike. Among the issues are unpredictable app reviews, inconsistent App Store rankings, and a lack of transparency around decisions. The CMA also raised concerns about high commission fees, up to 30 percent, and restrictions that prevent developers from pointing users to cheaper payment options outside the apps.
Reuters confirmed the CMA wants Apple to apply clear, objective standards for app reviews and allow developers to appeal rejections. It also wants transparency around how Apple and Google rank apps and stronger support for cross-platform data transfers. Looking ahead, the regulator may force Apple to allow sideloading and alternative app stores on iOS.
Pushback from Apple and Google
In statements issued Wednesday, both tech giants pushed back. Apple warned that these proposals would “undermine the privacy and security protections that our users have come to expect.” The company added that it would continue engaging with the CMA to address its concerns.
Google’s Senior Director of Competition, Oliver Bethell, said Android and Chrome are open-source and already foster competition. He criticized the UK’s approach as “disappointing and unwarranted,” adding that regulation should be “evidence-based and proportionate.”
Meanwhile, both companies are already facing similar battles across Europe. In April, the EU fined Apple 500 million euros for DMA violations, after determining the company limited how developers could inform users of alternative payment methods. Apple has started making changes in the EU, including new App Store fees, but the European Commission says those adjustments still fall short. Apple plans to appeal.
Google is also under pressure. In March, the European Commission accused the company of favoring its own services in search results and limiting developers’ ability to offer better deals outside Google Play. Google is also appealing a separate 4.1 billion euro antitrust fine from 2018.
While the UK’s law mirrors the EU’s, its enforcement could differ in key ways. But the message is clear. Apple and Google’s dominance over mobile platforms, app distribution, and browser markets is no longer going unchallenged. The UK is joining the push to hold Silicon Valley giants accountable.
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