UK Prepares Tougher Rules for Apple and Google

The UK’s Competition and Markets Authority (CMA) designated Apple and Google as having strategic market status (SMS) for their mobile platforms. The decision opens the door to tougher regulation on the duo.

CMA's decision follows a ruling against Google earlier this month involving its general search and advertising services. In a statement, the CMA explained legal tests had been met to designate the pair with SMS for mobile platforms, covering OSes, app distribution, browsers, and browser engines on smartphones and tablets.

The regulator launched an investigation into the duo’s mobile platforms in January, gathering feedback from more than 150 stakeholders and engaging with the companies. It found the pair has substantial, entrenched market power and a position of strategic significance in their respective mobile platforms.

The CMA further highlighted that UK mobile device holders use either Apple or Google mobile platforms and are unlikely to switch between them. It added that mobile platforms are the main way users access content on their devices through apps, and businesses must develop and distribute content through the platforms to reach Apple and Android users, and ongoing technology developments involving AI are unlikely to eliminate the pair’s market power over a five-year designation period.

Reiterating its statement when assigning Google with SMS for its search and advertising services, the CMA stated the platform's designation is not a finding of wrongdoing and does not introduce immediate requirements. However, it enables the CMA to make interventions to ensure mobile platforms are open to effective competition. The UK joins the US, EU, and Japan in taking action to support businesses and consumers dependent on mobile platforms.