Britain’s Competition and Markets Authority (CMA) has moved to tighten oversight of Apple and Google, designating both tech giants with Strategic Market Status (SMS) — a classification that brings sweeping new regulatory powers over how their mobile platforms operate.
The decision, announced Wednesday after a nine-month investigation, means the CMA can now impose targeted rules on the two firms’ app stores, browsers, and operating systems to boost competition and consumer choice.
“Apple and Google’s mobile platforms are used by thousands of businesses right across the economy… but the platforms’ rules may be limiting innovation and competition,” said Will Hayter, the CMA’s Executive Director for Digital Markets.
The watchdog has long described Apple’s iOS and Google’s Android as an “effective duopoly,” noting that nearly all smartphones sold in the UK rely on one of the two systems — each with their own pre-installed app stores and browsers that dominate market access.
Apple, Google push back
Both companies sharply criticised the CMA’s ruling, warning that the new regime could have unintended consequences for users and the broader tech ecosystem.
Google called the designation “disappointing, disproportionate, and unwarranted,” with Oliver Bethell, its Senior Competition Director, saying the company now faces “a set of new — and, as of yet, uncertain — rules” that could impact its Android system, Play Store, and Chrome browser.
“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,” Bethell said.
Apple, meanwhile, argued that UK regulators risk undermining its signature focus on user privacy and experience.
“The UK’s adoption of EU-style rules would weaken privacy and security, delay access to new features, and create a fragmented, less seamless experience,” Apple said in a statement.
The company cited what it called the “negative impact” of similar regulations in the European Union under the Digital Markets Act (DMA) — a law that carries heavy penalties for non-compliance.
Expanding UK oversight of tech giants
Wednesday’s announcement follows the CMA’s earlier decision to grant Google SMS designation for its dominance in online search, with further rules expected later this year.
The latest move underscores Britain’s growing assertiveness in regulating global tech firms, aligning it more closely with the European Union’s push to curb digital monopolies.
Despite the tougher stance, Google has recently reaffirmed its long-term commitment to the UK, pledging a £5 billion ($6.7 billion) investment to support the country’s artificial intelligence and digital innovation drive.
Google currently employs more than 7,000 people in the UK, while Apple has nearly 8,000 staff across its British operations.
