The U.K.’s Competition and Markets Authority (CMA) has officially designated Apple and Google as holding “strategic market status” (SMS) across their mobile platforms, a move that grants the regulator greater power to intervene in how the companies operate their app stores, browsers, and operating systems.
The decision follows months of investigation and consultation with more than 150 stakeholders, concluding that both companies hold “substantial, entrenched market power” in their respective ecosystems. The CMA found that users are unlikely to switch between Apple’s iOS and Google’s Android once they’re invested in one platform, and that developers must go through their app stores to reach consumers.
While the designation doesn’t imply wrongdoing, it allows the CMA to enforce “targeted interventions” to promote fair competition and innovation.
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Apple warned that the move could slow the rollout of new features to U.K. users, while Google said it “did not see the rationale” for the decision. The regulator noted that emerging technologies like AI are unlikely to disrupt Apple and Google’s dominance within the next five years.
