UK CMA designates Apple and Google with “Strategic Market Status”

The UK’s Competition and Markets Authority (CMA) has placed Apple and Google under expanded oversight by designating them with Strategic Market Status (SMS). Similar in spirit to the EU’s Digital Markets Act, the UK’s SMS regime (under the Digital Markets, Competition and Consumers Act 2024) lets the CMA’s Digital Markets Unit set tailored conduct requirements for firms with entrenched “gateway” power.

What SMS can mean in practice

• Conduct rules: Obligations to prevent anti‑competitive behavior (e.g., self‑preferencing) and ensure fair dealing with business users.
• Interoperability & access: Potential requirements to open up key functionality/APIs and data on fair, reasonable terms.
• User choice & neutrality: Measures impacting defaults, app distribution and in‑app payments to increase switching and choice.
• Pro‑competitive interventions: Targeted remedies if conduct rules don’t restore competition.
• Penalties: Non‑compliance can draw fines up to 10% of global turnover, plus daily penalties for continued breaches.

Why this matters

iOS/App Store and Android/Play are critical gateways in the UK. SMS oversight could shape policies for alternative payments, distribution paths, default settings (browser/search) and data portability. Unlike the EU DMA’s prescriptive rules, the CMA can tailor obligations to each firm’s designated UK activities.

Potential impacts

• For users: More control over defaults, additional app/payment choices, clearer switching paths.
• For developers: Opportunities for alternative billing/distribution, greater transparency on policies and access to certain APIs/data.
• For platforms: New UK‑specific compliance programs, audits and potential policy changes across app stores and services.

Timeline and next steps

• Designation → consultation: SMS designations trigger CMA consultations on conduct requirements tailored to each company.
• Implementation & enforcement: The CMA can monitor, investigate and fine; decisions can be appealed to the Competition Appeal Tribunal.
• Watch for guidance: Expect phased obligations, with updates from the CMA/DMU as measures are finalized.

Context

The UK joins other jurisdictions increasing oversight of “gatekeeper” platforms. While outcomes may differ from the EU, the direction is similar: more contestability and choice in mobile ecosystems.

References:
CMA (official) ·
Digital Markets Unit ·
Digital Markets, Competition and Consumers Act 2024

Discussion: Which change would matter most to you in the UK—alternative app stores, third‑party billing options, or stricter rules on defaults and data access?