Britain Joins Global Push to Challenge Tech Giant Market Control
Britain’s Competition and Markets Authority (CMA) has officially designated Apple and Google as possessing “strategic market status” in the smartphone sector, granting regulators unprecedented authority to mandate specific operational changes aimed at enhancing market competition.
The regulatory action announced Wednesday positions the United Kingdom alongside the United States, European Union, and Japan in taking decisive measures against the two technology behemoths that collectively dominate the global smartphone ecosystem.
Mobile Operating Systems Face Increased Scrutiny
The CMA determined that Apple’s iOS and Google’s Android operating systems serve millions of British businesses and consumers but currently operate under restrictive practices that may be “limiting innovation and competition” within the digital marketplace.
The regulator emphasized that this designation stems from government directives to stimulate economic growth through enhanced market competition, rather than representing a finding of corporate wrongdoing.
Near-Total Market Dominance Enables Platform Control
Virtually all smartphones operating in Britain run exclusively on either Apple’s iOS or Google’s Android systems. Their respective application stores and web browsers maintain exclusive or commanding positions on their platforms, creating what regulators describe as a duopoly with significant market influence.
The CMA has previously documented how this market dominance enables both companies to exercise considerable control over digital content distribution, service provision, and technological innovation pathways across the mobile ecosystem.
Regulatory Framework Enables Targeted Interventions
While the strategic market status designation does not impose immediate operational requirements or constitute evidence of wrongdoing, it establishes the legal framework for the CMA to consider “proportionate, targeted interventions” designed to ensure platforms remain open to effective competition.
The regulator now possesses authority to examine specific business practices and mandate changes where competitive harm is identified, marking a significant expansion of regulatory oversight in Britain’s digital economy.
Tech Giants Express Strong Opposition to Designation
Google’s Response: Google, which received its first strategic market status designation earlier in October 2025 for search operations, characterized the smartphone designation as “disappointing, disproportionate and unwarranted.”
Oliver Bethell, Google’s senior competition director, emphasized in an official statement that “the CMA’s next steps will be crucial if the UK’s digital markets regime is to meet its promise of being pro-growth and pro-innovation.”
Apple’s Concerns: Apple strongly objected to the regulatory action, stating the company has “worked tirelessly” to create superior products, services, and user experiences. The technology giant warned that Britain risks undermining these achievements, potentially resulting in diminished privacy protections, weakened security measures, and delayed access to innovative features.
Apple specifically referenced European Union regulatory interventions, urging British authorities to avoid following similar paths: “We’ve seen the impact of regulation on Apple users in the EU, and we urge the UK not to follow the same path.”
Potential Reforms Could Benefit App Developers
Tom Smith, a competition lawyer at Geradin Partners and former CMA director, suggested the regulator could now grant application developers increased operational freedom, particularly enabling them to inform customers about alternative pricing options outside platform-controlled payment systems.
“This is something that has already been adopted in the U.S., so it should not be a controversial measure,” Smith noted, referencing similar reforms implemented by American regulators.
Such changes could significantly reduce the financial burden on app developers, who currently pay substantial commissions—typically 15-30 percent—on transactions processed through Apple’s App Store and Google Play Store.
Industry Groups Warn of Investment Uncertainty
Matthew Sinclair, senior director of the Computer and Communications Industry Association (CCIA) trade body, cautioned that the “opaque” designation process creates substantial uncertainty for companies pursuing innovation and investment in Britain.
Sinclair emphasized the importance of balanced regulatory approaches: “It is vital that the CMA takes a more careful approach when considering conduct requirements and responds to the clear steer from ministers to prioritise investment and growth.”
Global Context: Coordinated Regulatory Movement
The UK action reflects a broader international trend of increased regulatory scrutiny on dominant technology platforms. Multiple jurisdictions have implemented or proposed similar measures:
United States: Antitrust lawsuits and legislative proposals targeting app store practices European Union: Digital Markets Act imposing strict requirements on “gatekeeper” platforms Japan: Regulations promoting third-party app store access South Korea: Laws prohibiting mandatory in-app payment systems
This coordinated global approach signals a fundamental shift in how democratic governments regulate digital platform power and market concentration.
Next Steps in Regulatory Process
The CMA will now enter a consultation phase to determine specific conduct requirements for Apple and Google. Potential interventions could include:
- Allowing alternative app stores on iOS devices
- Enabling third-party payment processing systems
- Reducing restrictions on cross-platform functionality
- Improving data portability and interoperability
- Enhancing transparency in app store policies
The regulator has committed to balancing competition objectives with innovation incentives, security considerations, and consumer protection priorities as it develops specific remedies.
