UK CMA designates Apple and Google with Strategic Market Status (SMS)
The UK’s Competition and Markets Authority (CMA) has classified Apple and Google as having Strategic Market Status (SMS) in key digital markets. The designation places both companies under expanded oversight for how they run app stores, handle in‑app payments, set default apps and use data across their ecosystems. The move is directionally similar to the EU’s Digital Markets Act (DMA), though the UK regime is separate and tailored.
What’s changing
- Closer scrutiny of core platform rules: App store terms, billing options, default apps (browser/search), interoperability and cross‑service data use will face tighter checks.
- Tailored conduct requirements: The CMA can impose obligations to curb self‑preferencing and ensure fair access for rival apps and services.
- User choice & portability: Potential measures to make switching defaults easier and to improve data portability between services.
Why it matters
- Consumers: Could see more browser/payment choice, clearer consent for data use and fewer lock‑ins.
- Developers: May benefit from fairer distribution terms, alternative billing and more transparent review processes.
- Platforms: Apple and Google face added compliance, audits and possible changes to fees and product policies in the UK.
UK vs. EU: What’s the difference?
While aligned in spirit with the EU’s DMA, the UK’s SMS framework under the Digital Markets, Competition and Consumers Act allows the CMA to tailor conduct requirements to local market concerns. Both regimes aim to open up key platform gateways and restrict anti‑competitive behavior.
What to watch next
- Specific conduct rules: Detailed UK obligations for app stores, browser engines, alternative payments and any sideloading pathways.
- Timelines & appeals: Phased implementation with consultations and potential legal challenges.
- Market impact: Possible adjustments to app store fees, developer policies and default app choices on UK‑sold devices.
References:
UK Competition & Markets Authority (CMA) ·
DMCC Act (UK) ·
EU Digital Markets Act (DMA)
Discussion: Will stronger UK oversight actually deliver more choice and lower costs for users and developers—or mainly add compliance overhead with limited real‑world benefit?
