Both companies also face limited competition in mobile browsers. Apple’s Safari browser commands an 80 to 90% share within Apple’s mobile ecosystem, while Google’s Chrome holds a 70 to 80% share of Android users, the CMA noted in a blog post.
Further, the CMA found that Apple and Google allegedly restrict app developers from ‘steering’ customers outside their app stores—for example, toward alternative payment or subscription methods—which could render some business models unviable, reduce consumer choice, and stifle innovation.The companies also impose restrictions on developers’ access to device features and functionalities, including those linking smartphones and wearable technology like smartwatches, potentially impeding innovation.
The CMA highlighted ‘choice architecture’ factors such as default settings, pre-installation, prominence, prompts, and friction, which may favour the firms’ own services, limiting competition and genuine choice for users.
In response to these concerns, the CMA proposed targeted interventions under the new digital markets competition regime, which took effect on January 1, 2025. Details of the potential remedies are outlined in the agency’s investigation roadmaps.
“The targeted and proportionate actions we have set out today would enable UK app developers to remain at the forefront of global innovation while ensuring UK consumers receive a world-class experience. Time is of the essence: as competition agencies and courts globally take action in these markets, it’s essential that the UK doesn’t fall behind,” said Sarah Cardell, Chief Executive of the CMA.
Interested parties can submit views on the proposed designations, with final decisions expected by October 22.
Google responds
Oliver Bethell, Google’s Director of Competition, expressed disappointment over the CMA’s decision. He emphasized that “Android is open source and Chrome is built on our browser engine Blink, which is also open source. Together with Play, these offerings enable great choice, security, and innovation for users.”
Bethell added, “That’s why today’s announcement is both disappointing and unwarranted. It is crucial that any new regulation is evidence-based, proportionate, and does not become a roadblock to growth in the UK. We remain committed to constructive engagement with the CMA for the duration of this process.”
What does the SMS designation mean?
To designate a firm with ‘strategic market status,’ the CMA must demonstrate that it meets two legal tests: ‘substantial and entrenched market power’ and a ‘position of strategic significance.’ The CMA has provisionally found that both Apple and Google meet these criteria regarding mobile platforms.
Once designated, the CMA can impose conditions to address anticompetitive behaviour. The rules also require the companies to notify the CMA of mergers, even if they do not meet existing notification thresholds under competition law.
Global parallels
In the US, developers can now steer users outside the Apple App Store to complete purchases, leading to tangible improvements—such as Spotify offering in-app links for audiobooks and Proton cutting prices for privacy and encryption services by up to 30%.
In the EU, consumers can choose from a variety of digital wallets offering innovative benefits, including integrated cashback and consolidated purchase information. The EU’s Digital Markets Act allows for designating gatekeeper companies and comprehensively regulating the dominant power of large digital firms.
In June, a Dutch court ruled that Apple abused its dominant position by imposing unreasonable conditions on dating app providers in its App Store. The Dutch competition authority had ordered Apple to change its policy requiring dating apps to use Apple’s payment system exclusively and prohibited referring to external payment options. Apple faces a penalty of 5 million euros per week until compliance.
