On 23 January 2025 the Competition and Markets Authority launched two separate SMS investigations, one into Apple and another into Google, to assess their position in their respective mobile ecosystems.
The CMA has now announced that it proposes to designate Apple and Google with “strategic market status” (SMS) under the Digital Markets, Competition and Consumers Act 2024 in each of their mobile platforms and has published separate roadmaps of potential actions to improve competition.
The CMA says that Apple and Google’s mobile platforms hold an effective duopoly, with around 90 – 100% of UK mobile devices running on Apple or Google’s mobile platform. The CMA’s investigation has heard concerns affecting businesses and consumers in the UK. These differ across Apple and Google but include:
- inconsistent and unpredictable app review processes can create uncertainty for developers, meaning delayed or failed launches;
- inconsistent app store search rankings may favour apps owned by the firms;
- up to 30% commission on some in-app purchases, as well as restrictions on developers “steering” customers outside of their app stores, for example towards other ways to pay or subscribe, which could make some business models unviable, decrease consumer choice and reduce innovation;
- restrictions on developers’ access to features and functionality including between smartphones and wearable technology (such as smart watches) may be impeding innovation; and
- “Choice architecture” (like default settings, pre-installation, prominence, prompts, and friction) may favour the firms’ own services, limiting competition and genuine choice for users.
The CMA has published roadmaps outlining how it would prioritise actions taken during the first half of any designation period. Measures outlined in the roadmaps focus on areas including:
App stores
Ensuring a fair and transparent app review process and app store rankings to give UK app developers certainty.
Allowing the ability to “steer” users out of app stores, for example to make purchases. This could drive innovation and financial savings for developers.
Interoperability
Ensuring UK app developers have interoperable access to key Apple functionality to create innovative products and services.
Addressing Apple restrictions on digital wallets to ensure UK FinTech can compete, and enabling connected devices like smartwatches and gaming headsets to seamlessly connect with smartphones.
Consumer choice
Ensuring consumers have a genuine choice over the services they use on their devices.
AI services
Exploring the factors likely to be important for the development of AI services like voice assistants on mobile devices with the aim of making sure that there is a level playing field in this rapidly advancing sector.
The CMA is consulting on its proposed designation decisions and accompanying roadmaps. Its consultation ends on 22 August 2025. It will make a final decision on both SMS designations by 22 October 2025. If the CMA goes ahead with the designations, it will begin consulting on a first set of interventions from autumn 2025.
