UK opens door to tougher rules on Apple, Google

"The UK's Competition and Markets Authority (CMA) designated Apple and Google as having strategic market status (SMS) for their respective mobile platforms, paving the way to tougher regulation. Its decision follows a ruling against Google earlier this month involving its general search and advertising services. In a statement, the CMA explained legal tests had been met to designate the pair with SMS for mobile platforms, covering OSes, app distribution, browsers and browser engines on smartphones and tablets."

"The CMA further highlighted: UK mobile device holders use either Apple or Google mobile platforms and are unlikely to switch between them; mobile platforms are the main way users access content on their devices through apps and businesses must develop and distribute content through the platforms to reach Apple and Android users; and ongoing technology developments involving AI are unlikely to eliminate the pair's market power over a five-year designation period."

"The regulator launched an investigation into the duo's mobile platforms in January, gathering feedback from more than 150 stakeholders and engaging with the companies. It found the pair have substantial, entrenched market power and a position of strategic significance in their respective mobile platforms. Reiterating its statement when assigning Google with SMS for its search and advertising services, the CMA stated the platforms designation is not a finding of wrongdoing and does not introduce immediate requirements."

The CMA designated Apple and Google with Strategic Market Status for their mobile platforms, covering operating systems, app distribution, browsers and browser engines on smartphones and tablets. The regulator launched an investigation in January, consulted over 150 stakeholders, and engaged with the companies. It found both firms hold substantial, entrenched market power and are strategically significant, with UK users unlikely to switch between platforms and businesses required to use the platforms to reach device users. The CMA judged AI developments unlikely to displace that power over five years. The designation does not allege wrongdoing or impose immediate duties but enables future interventions to improve competition.

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