The UK’s Competition and Markets Authority (CMA) is preparing to impose new rules on Apple and Google after designating both firms as holding “strategic market status” — a classification that gives the regulator broad powers to curb the tech giants’ dominance in digital markets.
The move comes after a months-long investigation found the two US companies maintain an effective duopoly over the UK mobile sector through their control of iOS and Android operating systems, app stores, and web browsers.
In a statement released Tuesday, the CMA said its aim is to promote competition, innovation, and greater consumer choice in mobile services. “Apple and Google’s mobile platforms are both critical to the UK economy,” said CMA Chief Executive Sarah Cardell. “But our investigation has identified opportunities for more innovation and choice. Time is of the essence.”
The regulator’s “roadmaps” for reform will initially focus on app store practices, including developer fees and restrictions on in-app payment systems. The CMA also plans to assess whether Apple should open its digital wallet services to third-party providers — a move that could have major implications for fintech innovation.
While the CMA signalled firm intent to regulate, it has stopped short of mandating more sweeping changes such as allowing alternative app stores or mandating third-party payment integration. These proposals, controversial in other jurisdictions, have been deferred until at least 2026.
That decision drew criticism from industry leaders and campaigners. “The CMA is ducking major decisions,” said Tom Smith, competition lawyer and former CMA official. “It’s proposing useful measures but avoiding anything that truly challenges Apple and Google’s control.”
Epic Games CEO Tim Sweeney, long a critic of mobile platform gatekeeping, called the CMA’s stance “surprisingly weak,” warning that Fortnite’s return to the UK App Store and the rollout of Epic’s mobile store were now uncertain.
Apple defended its position, warning the proposals could “undermine privacy and security” and “force us to give away our technology to foreign competitors.” Google also pushed back, calling the CMA’s findings “disappointing and unwarranted.”
According to the CMA, Android contributed over £9.9 billion to UK developers in 2022 and supported more than 457,000 jobs. Google urged regulators to ensure new rules remain “proportionate and supportive of growth.”
The strategic market status designation, which lasts five years, grants the CMA authority to enforce strict conduct rules and levy fines of up to 10% of global turnover for violations.
The investigation forms part of the UK’s broader pro-competition digital regime aimed at reining in the influence of big tech and stimulating the domestic digital economy. While some have raised concerns about the regulator’s independence — particularly following the appointment of former Amazon UK boss Doug Gurr as CMA chair — the government insists the process remains impartial.
Finalised rules are expected in 2026. Until then, the CMA will consult further, as pressure builds from developers and consumer advocates calling for a more level playing field. The UK’s next steps are likely to have ripple effects across Europe and global digital regulation.
