The UK’s competition regulator is preparing to declare Apple and Google as holding “Strategic Market Status” (SMS) in the provision of their mobile platforms, in what could become a key moment for the country’s new digital markets regime. In provisional decisions released today, the Competition and Markets Authority (CMA) outlined its intent to subject both tech giants to enhanced scrutiny, citing entrenched power and limited competitive pressure in key digital activities linked to smartphones and tablets.
The investigations into Apple and Google focus on their operating systems, native app distribution, and mobile browsers and browser engines—the infrastructure that underpins most digital experiences on mobile devices. These combined services, referred to by the CMA as a “Mobile Platform,” are how consumers access everything from search engines and streaming services to e-commerce and banking apps.
Nearly all UK adults use mobile devices daily, and almost all of those devices rely on either Apple’s or Google’s platform. According to the CMA’s estimates, Apple controls between 50 and 60 percent of the UK market, while Google—via its Android system and partnerships with manufacturers like Samsung and Motorola—holds a further 40 to 50 percent. Between them, the two companies form what the regulator has previously described as an “effective duopoly” over mobile ecosystems.
The CMA’s provisional findings conclude that both companies enjoy substantial and entrenched market power in the UK, with very few real alternatives available to app developers or consumers. Users rarely switch platforms once they have chosen between iOS and Android, due in part to concerns over losing data or functionality. Meanwhile, app developers face little choice but to distribute through Apple’s App Store or Google’s Play Store if they want to reach a mass audience.
Regulators have long voiced concerns about the influence both companies wield. Among the issues flagged in the proposed decisions are opaque and unpredictable app review processes, restrictions on alternative payment methods, and the potential for self-preferencing in search results and app store rankings. Apple, for example, requires all browsers on its system to use its own WebKit engine, limiting competition and innovation in the mobile browsing space. Google, meanwhile, faces criticism for using agreements with device manufacturers to pre-install and promote its own services, including Search, Chrome, and YouTube, across Android devices.
The implications for UK businesses are significant. From fintech startups and gaming developers to food delivery services and online retailers, many companies rely on mobile apps as a primary way to reach consumers. The UK’s app economy, which the CMA estimates supports around 400,000 jobs and contributes roughly 1.5 percent of GDP, could be at risk if market conditions deter innovation or raise barriers to entry. High commission fees—up to 30 percent on digital sales—are another point of contention, particularly for smaller developers and content producers.
While today’s decisions are not final, the direction is clear. The CMA is now consulting on its findings and expects to issue its final decisions by October. A designation of SMS would not immediately trigger remedies but would empower the regulator to impose future rules to ensure fair competition. These could include conduct requirements, interoperability mandates, or even structural changes, though each would be subject to its own public consultation.
The UK’s move is part of a broader global shift. The European Commission has already designated both Apple and Google as “gatekeepers” under the Digital Markets Act and is investigating their compliance. Japan, South Korea, and the United States have launched parallel probes or adopted ex-ante rules aimed at curbing similar concerns around market power in mobile ecosystems.
CMA officials stress that the goal is not to punish success but to ensure fair and open digital markets. Any interventions, they say, will be guided by principles of proportionality and predictability to avoid stifling investment or innovation. Still, the message is unambiguous: when platforms become indispensable, the public interest demands oversight.
For Apple and Google, the coming months may bring more than just consultations. They could mark the beginning of a new era in digital regulation—one where market power in the mobile world no longer goes unchecked.
