CMA targets Apple and Google’s market dominance to strengthen UK app market
The UK’s competition watchdog has proposed a sweeping shake-up of the mobile app economy, with plans to designate Apple and Google as having “strategic market status” (SMS) – a move that could open the door to new rivals, lower development costs, and broadly loosen the tech giants’ tight grip on the mobile ecosystem.
In a pair of roadmaps published on Wednesday, the Competition and Markets Authority (CMA) laid out potential interventions aimed at rebalancing the UK’s £33bn app economy.
The measures would target everything from app store fees and review processes to restrictions on digital wallets.
The announcement comes as regulators globally ramp up pressure on Big Tech, with the CMA warning that the UK must act fast or risk falling behind international peers in curbing market concentration.
An Apple spokesperson said: “We’re concerned the rules the UK is now considering would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors.”
“We will continue to engage with the regulator to make sure they fully understand these risks”.
Mobile power, fintech innovation and app store dominance
Apple and Google’s operating systems power nearly all UK smartphones – controlling up to 100 per cent of the market between them.
That duopoly has long sparked concerns about high commission rates, opaque ranking algorithms and the blocking of rival payment and app distribution models.
According to the CMA, these practices may be stifling innovation, limiting consumer choice and putting UK fintech and gaming startups at a disadvantage.
“Time is of the essence”, said CMA chief executive Sarah Cardell, who urged the UK not to lag behind other jurisdictions moving to rein in digital platforms.
Among the planned remedies are potential requirements for more transparent and consistent app review processes, easier access to third party developers, and allowing developers to direct users outside the app store for purchases.
The UK’s app economy supports roughly 400,000 jobs and contributes an estimated 1.5 per cent of GDP.
Fintech alone has drawn over £18bn in inward investment over the past three years, while mobile gaming adds nearly £2bn annually.
The CMA said its approach would be “proportionate” and focused on promoting innovation, not punishing success.
Big Tech pushes back
Google has pushed back on the proposal.
“Today’s announcement is both disappointing and unwarranted”, said Oliver Bethell, senior director of competition at Google.
The compant said Android underpins a competitive and diverse ecosystem, generating nearly £10bn in developer revenue and supporting over 450,000 jobs in the UK alone.
Google warned that over-regulation could risk stifling growth and innovation, arguing that Android’s open-source nature enables “great choice, security and innovation”.
Still, a growing number of UK developers have expressed concerns about high commissions and limited payment options.
While most developers distribute across multiple platforms, integrated billing and user trust remain key sticking points.
A recent survey found that 94 per cent of UK developers believe users prefer downloading from trusted app stores, while 80 per cent see integrated billing as essential to user experience.
A final decision on the SMS designation is due by October 2025. If approved, the move would give the CMA new powers to impose conduct requirements on Apple and Google.