The º£½ÇÊÓƵ's competition watchdog has unveiled a comprehensive overhaul of the mobile app economy, with proposals to designate Apple and Google as possessing "strategic market status" (SMS) – a development that could pave the way for new competitors, reduce development expenses, and generally weaken the tech giants' stranglehold on the mobile ecosystem.
In a pair of roadmaps released on Wednesday, the Competition and Markets Authority (CMA) outlined potential interventions designed to rebalance the º£½ÇÊÓƵ's £33bn app economy, as reported by .
The proposals would address everything from app store charges and review procedures to limitations on digital wallets.
The announcement arrives as regulators worldwide intensify pressure on Big Tech, with the CMA cautioning that the º£½ÇÊÓƵ must move swiftly or risk lagging behind international counterparts in addressing market concentration.
An Apple spokesperson said: "We're concerned the rules the º£½ÇÊÓƵ is now considering would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors."
"We will continue to engage with the regulator to make sure they fully understand these risks."
Mobile power, fintech innovation and app store dominance
Apple and Google's operating systems drive nearly all º£½ÇÊÓƵ smartphones – commanding up to 100 per cent of the market between them.
Long-standing concerns have been raised about the duopoly, particularly regarding high commission rates, opaque ranking algorithms and the blocking of rival payment and app distribution models.
The CMA suggests that these practices could be stifling innovation, limiting consumer choice and putting º£½ÇÊÓƵ fintech and gaming startups at a disadvantage.
"Time is of the essence", stated CMA chief executive Sarah Cardell, who encouraged the º£½ÇÊÓƵ not to fall behind other jurisdictions in regulating digital platforms.
Among the proposed solutions are potential requirements for more transparent and consistent app review processes, easier access for third party developers, and allowing developers to direct users outside the app store for purchases.
The º£½ÇÊÓƵ's app economy supports approximately 400,000 jobs and contributes an estimated 1.5 per cent of GDP.
Fintech alone has attracted over £18bn in inward investment over the past three years, while mobile gaming contributes nearly £2bn annually.
The CMA stated its approach would be "proportionate" and focused on promoting innovation, not punishing success.
Big Tech pushes back
Google has resisted the proposal.
"Today's announcement is both disappointing and unwarranted", said Oliver Bethell, senior director of competition at Google.
The company argued that Android underpins a competitive and diverse ecosystem, generating nearly £10bn in developer revenue and supporting over 450,000 jobs in the º£½ÇÊÓƵ alone.
Google cautioned that excessive regulation could threaten to suppress growth and innovation, contending that Android's open-source framework facilitates "great choice, security and innovation".
Nevertheless, an increasing number of º£½ÇÊÓƵ developers have voiced concerns regarding steep commissions and restricted payment alternatives.
Whilst the majority of developers distribute applications across multiple platforms, integrated billing and user confidence remain significant obstacles.
A recent survey revealed that 94 per cent of º£½ÇÊÓƵ developers believe users favour downloading from trusted app stores, whilst 80 per cent consider integrated billing crucial to user experience.
A final decision on the SMS designation is expected by October 2025. Should it be approved, the measure would grant the CMA enhanced powers to impose conduct requirements on Apple and Google.
