The Competition and Markets Authority (CMA) has formally designated Google and Apple with strategic market status (SMS) under the UK鈥檚 new digital markets regime – a decision immediately condemned by Google as 鈥渄isappointing, disproportionate and unwarranted鈥�.
The regulator has officially decided that the companies鈥� market power is so great that it needs special oversight to protect fair competition and innovation.
The designation now gives the CMA enhanced powers to oversee competition in mobile ecosystems, covering operating systems, app distribution, browsers and browser engines across smartphones and tablets.
It follows months of investigation and consultation involving more than 150 stakeholders and marks one of the first major actions under the UK鈥檚 Digital Markets, Competition and Consumers Act, which came into force in January 2025.
The regulator concluded that both tech giants hold 鈥渟ubstantial, entrenched market power鈥� and 鈥渟trategic significance鈥� in their respective mobile platforms.聽
While the decision is not a finding of wrongdoing, it allows the CMA to introduce targeted interventions to ensure fair competition and prevent potential abuses of dominance.
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Will Hayter, executive director for digital markets at the CMA, said: 鈥淭he app economy generates 1.5% of the UK鈥檚 GDP and supports around 400,000 jobs, which is why it鈥檚 crucial these markets work well for business so they can invest, innovate and drive the growth this country needs.
鈥淎pple and Google鈥檚 mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms鈥� rules may be limiting innovation and competition.鈥�
In response, Google defended its mobile ecosystem, arguing that Android and Chrome encourage choice rather than restrict it.
鈥淎ndroid and Chrome were built on the idea of creating more choice, not less,鈥� the company said.聽
鈥淎nyone, including our competitors, can customise and build devices with the open-source Android operating system – for free.
And while Google Play helps people download apps on their devices, if you don鈥檛 find the app you鈥檙e looking for, you can download apps from a rival store or directly from a developer鈥檚 website – something the majority of Android users actually do.鈥�
The company also cited its contribution to the UK economy, saying Android supports 457,000 UK jobs, generates 拢9.9 billion in revenue for UK developers and enjoys a 91% user satisfaction rate.
Google warned, however, that the CMA鈥檚 decision creates uncertainty for its UK mobile business and said upcoming rules will be 鈥榗rucial鈥� to ensuring the new regime remains 鈥榩ro-growth and pro-innovation鈥�.
The CMA said further steps will follow to decide what specific obligations Apple and Google must meet under the new framework.聽
Similar measures are being introduced in the US, EU, and Japan as regulators worldwide move to curb big tech dominance in mobile markets.