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 framework, the SMS regime under the UK’s Digital Markets, Competition and Consumers Act 2024 empowers the CMA’s Digital Markets Unit to impose tailored conduct requirements on firms with entrenched, gateway power.

What SMS can mean in practice

• Conduct requirements: Rules to curb anti-competitive behavior (e.g., self-preferencing) and promote fair dealing with business users.
• Interoperability and access: Potential obligations to open up key functionality or data on fair, reasonable terms.
• Choice and neutrality: Measures around defaults, app distribution and in-app payments to ensure user choice and developer freedom.
• Pro-competitive interventions: Targeted remedies if conduct rules aren’t enough to restore competition.
• Penalties: Non-compliance can attract fines of up to 10% of global turnover, plus daily penalties for ongoing breaches.

Why it matters

Apple’s iOS/App Store and Google’s Android/Play ecosystems are critical gateways for consumers and developers. SMS oversight could affect areas like billing options, distribution paths, default settings and data access in the UK. The CMA can tailor obligations case by case, so outcomes may differ from the EU’s DMA—but the direction of travel is similar: more choice and contestability.

Impact: users, developers and the platforms

• Users: Potentially more control over defaults, additional app/payment choices and clearer switching paths.
• Developers: Scope for alternative distribution and billing routes, and more transparency on platform rules and data access.
• Platforms: New compliance programs, audits and potential changes to App Store/Play policies specific to the UK market.

Timeline and next steps

• Designation process: SMS designations trigger consultation on conduct requirements tailored to each firm’s UK activities.
• Compliance & enforcement: The CMA can monitor, investigate and fine for breaches; firms may appeal decisions to the Competition Appeal Tribunal.
• Watch for guidance: Expect updates from the CMA/DMU as obligations are finalized and implementation milestones are set.

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

Discussion: What changes would you most like to see in the UK’s mobile ecosystems—more app store choice, alternative payments, or tighter rules on defaults and data use?