The UK Competition and Markets Authority (CMA) has announced plans to designate Apple and Google with Strategic Market Status following an extensive investigation into their control of the mobile ecosystem. The investigation determined that the two companies collectively dominate 90-100 percent of the UK mobile device market. The announcement follows the recent introduction of the Digital Markets, Competition and Consumers Act (DMCCA), which granted the CMA expanded powers to regulate major technology companies.
The investigation revealed significant market concentration within each platform’s ecosystem. Safari browser maintains an 80-90 percent share among iOS users, while Chrome holds 70-80 percent of the Android user base. The findings highlight the platforms’ extensive influence over UK mobile users’ digital experiences, particularly as both browsers play crucial roles in emerging passwordless authentication standards and digital identity verification.
The regulatory body identified several areas of concern regarding app store operations. These include inconsistent app review processes that create uncertainty for developers and potential launch delays. Additional issues involve app store search rankings that may favor platform-owned applications, commission rates up to 30 percent on certain in-app purchases, and restrictions on developers directing users to alternative payment methods. The payment restrictions have already faced scrutiny in other markets, with PayPal recently launching alternative payment services in Germany following similar regulatory intervention.
“Apple and Google’s mobile platforms are both critical to the U.K. economy — playing an important role in all our lives, from banking and shopping to entertainment and education,” said CMA CEO Sarah Cardell. “But our investigation so far has identified opportunities for more innovation and choice.”
The authority has developed roadmaps outlining potential interventions to enhance competition, innovation, and consumer outcomes in the UK mobile market. These proposals are currently under consultation, with final decisions anticipated by October 2025. Following any Strategic Market Status designation confirmation, the CMA intends to begin consulting on initial regulatory interventions starting autumn 2025.
The CMA emphasizes that future interventions will be targeted and proportionate, focusing specifically on critical digital markets to improve outcomes for businesses, consumers, and the broader UK economy. Their analysis concluded that current mobile ecosystem policies are affecting innovation and restricting competition and consumer choice in the UK market. The initiative is part of broader UK efforts to modernize digital services, including the government’s recent push for enhanced cybersecurity through passkey adoption in government systems.
Sources: PYMNTS, Seeking Alpha, UK Competition and Markets Authority Blog, Bloomberg
