Apple & Google’s mobile dominance under UK watchdog siege

The UK’s competition regulator intensified its scrutiny by targeting Apple and Google’s mobile services, urging the companies to update parts of their app stores and related systems.

Earlier this week, the Competition and Markets Authority announced it would examine the possibility of granting the two US tech firms a “strategic market status,” or SMS, according to a CNBC report.

Back in January, the CMA launched a probe to determine whether Apple or Google have excessive influence over mobile operating systems and digital platforms in the UK.

What is Strategic Market Status (SMS)?

Under SMS, businesses deemed to possess “substantial and entrenched market power” and a “position of strategic significance” in a digital domain can be compelled to stop or make changes to certain practices that hinder competition.

The CMA’s review included many parts of mobile offerings, from OS platforms and application marketplaces to web‑browsing software.

Officials examined if these firms block third parties from distributing competing apps or services through their platforms. The probe also assessed whether they leverage their dominance in platform software, marketplace operations or browser settings for the advantage of their own applications and services.

The investigation further scrutinized developer agreements for potentially “unfair terms and conditions.”

Consumers and businesses have reported issues such as “inconsistent and unpredictable app review processes” and search results that seem to favor the companies’ own products.

The CMA also took aim at fees reaching as much as 30% on certain in‑app transactions and at rules that prevent developers from informing customers about lower‑cost payment options or off‑app subscription routes.

Developers say they fear Apple or Google could access sensitive business data from competitors during the review stage.

Android covers about 61% of UK smartphone usage, whereas iOS represents around 38%, per Kantar data. On Android, Google operates the Play Store and Chrome while Apple’s ecosystem features the App Store and Safari.

What does the CMA want to change?

The CMA proposed both short‑term fixes and more lasting solutions. It requests Apple manage app assessments in a “fair, objective and transparent” manner, supplying detailed explanations for any rejections or hold‑ups and establishing a formal channel for companies to appeal decisions.

They asked Apple to share how it ranks apps in the App Store—and asked Google to do the same for the Play Store.

The watchdog is exploring ways to enable developers to direct customers to external payment or subscription channels to avoid the existing in‑app fee.

It also called for streamlined data‑transfering tools between iOS and Android to make switching platforms smoother.

Looking ahead, the CMA said it may require Apple to open iOS and iPad software to third‑party marketplaces and permit apps to be installed directly from developers’ sites, a process often called “sideloading.”

US tech giants push back against UK regulator’s demands

Apple said the CMA’s plans 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.”

The company added, “We will continue to engage with the regulator to make sure they fully understand these risks.”

Google’s Senior Director of Competition, Oliver Bethell, emphasized that Chrome and Android are built on open‑source code, delivering “great choice, security and innovation for users.”

He described the announcement as “disappointing and unwarranted” and highlighted Android’s role in supporting British developers and the economy.

“It is therefore crucial that any new regulation is evidence‑based, proportionate and does not become a roadblock to growth in the UK We remain committed to constructive engagement with the CMA for the duration of this process,” Bethell said.

Meanwhile, US tech giants are also facing more EU investigations. Apple and Google remain under pressure from EU regulators in Brussels.

In April, EU enforcers imposed a €500 million penalty on Apple for violations of the Digital Markets Act, and the company intends to challenge the ruling.

In March, regulators alleged that Alphabet prioritized its own search offerings and is contesting a €4.1 billion penalty stemming from a 2018 antitrust decision.

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