Britain’s Competition and Markets Authority (CMA) has announced that Apple and Google will face tougher regulations under new measures targeting major technology firms.
The CMA said on Wednesday that both companies had been granted “strategic market status” (SMS) following a nine-month investigation into their dominance of mobile ecosystems.
The designation will give the regulator greater powers to enforce changes to how key mobile services operate, with the goal of enhancing consumer choice and competition.
Reacting to the move, Google described the decision as “disappointing, disproportionate and unwarranted”, while Apple argued that adopting EU-style rules would undermine its commitment to user experience and privacy.
The CMA’s findings likened the firms’ control of mobile platforms to an “effective duopoly”, noting that almost all mobile phones sold in the UK are pre-installed with either Apple’s iOS or Google’s Android operating systems. Their app stores and browsers, the authority added, hold exclusive or dominant positions compared with alternatives.
“Apple and Google’s mobile platforms are used by thousands of businesses across the economy, but their rules may be limiting innovation and competition,” said Will Hayter, Executive Director for Digital Markets at the CMA.
The new UK measures mirror the European Union’s Digital Markets Act (DMA), which also imposes strict obligations on large technology platforms and carries the potential for significant financial penalties.
Google said the decision affects its Android operating system, Play Store, and Chrome browser, warning that the new regulations could create uncertainty for its UK operations.
“The CMA’s next steps will be crucial if the UK’s digital markets regime is to meet its promise of being pro-growth and pro-innovation,” said Oliver Bethell, Google’s Senior Competition Director.
Apple, meanwhile, claimed that tighter regulation could weaken user privacy and security, delay access to new features, and create a fragmented user experience.
“We’ve seen the impact of regulation on Apple users in the EU, and we urge the UK not to follow the same path,” the company stated.
This decision follows the CMA’s earlier move to designate Google’s online search operations under SMS, with consultations ongoing regarding the specific rules that will apply.
Despite its objections, Google recently announced a £5 billion investment in the UK over the next two years to support the country’s AI sector, employing more than 7,000 people, while Apple employs around 8,000.