UK CMA designates Apple and Google with Strategic Market Status (SMS) under the DMCC

The UK Competition and Markets Authority (CMA) has formally designated Apple and Google as having Strategic Market Status (SMS) under the Digital Markets, Competition and Consumers Act 2024 (DMCC). The move places both firms under enhanced oversight in the UK and enables the CMA to impose tailored conduct requirements to keep mobile ecosystems open and competitive.

What changed

• SMS designation: Recognizes substantial, entrenched market power and strategic significance in digital markets. It is not itself a finding of wrongdoing.
• Targets: Apple’s iOS and App Store; Google’s Android and Play Store — plus related services like mobile browsers, in‑app payments and default settings.

What SMS means (at a glance)

• Conduct requirements: The CMA can set firm‑specific rules (after consultation) to ensure fair dealing, transparency and interoperability.
• Pro‑competitive interventions: Where necessary, the CMA can order measures to address sources of market power.
• Time‑limited and reviewable: Designations typically last up to five years and can be reviewed.

Scope likely covered

• App distribution: App store rules, discoverability and access terms for developers.
• Mobile browsers/web tech: Defaults, engine constraints and access to web APIs.
• Payments: In‑app payment choice and terms.
• Defaults and choice screens: How search engines, browsers and other core services are pre‑set and switched.

Possible obligations (examples, subject to consultation)

• Fair, reasonable and transparent terms for developers and business users.
• No self‑preferencing over rival apps or services.
• Interoperability/access to key device or OS functionalities on proportionate terms.
• Real user choice for defaults with simple switching and clear disclosures.

Timeline and next steps

• 2025: Proposed designations consulted earlier in the year; formal SMS designation confirmed in October 2025.
• Coming up: CMA consultations on specific conduct requirements and any pro‑competitive remedies, followed by phased compliance windows.

Penalties for non‑compliance

• Under the DMCC, the CMA can fine designated firms up to 10% of global turnover for breaches of conduct requirements, plus daily penalties for ongoing non‑compliance.

What this could mean for users and developers

• Users: Clearer choices for defaults (browser/search), improved browser competition and potentially more app distribution options.
• Developers: Greater transparency around app store rules/ranking, potential flexibility on in‑app payments and improved access to platform capabilities.

Learn more

• CMA cases and announcements
• Digital Markets, Competition and Consumers Act (DMCC)
• Overview and context (The Register)

Discussion: Which change would most improve mobile platforms in the UK — easier default switching, more browser choice, alternative app stores, or fairer in‑app payment rules?