IP Law Daily, TECHNOLOGY/INTERNET NEWS: UK regulator proposes major crackdown on Apple and Google's mobile platform dominance, (Jul 25, 2025)

By Wendy Biddle, J.D.

Nearly all of the UK’s smartphone market is made up of Google or Apple products.

The UK's Competition and Markets Authority (CMA) has announced sweeping proposals to designate Apple and Google with "strategic market status" in mobile platforms, marking a significant escalation in efforts to break up the tech giants' stranglehold on smartphone and tablet markets. In a comprehensive roadmap published today, the CMA outlined how it plans to tackle what it describes as an "effective duopoly" that sees Apple and Google control between 90-100% of UK mobile devices. The regulator's Digital Markets Unit, led by Will Hayter, warned that the current lack of competition is stifling innovation, limiting consumer choice, and hampering UK businesses.

Scale of the problem. The statistics show the extent of Apple and Google's market control. On Apple devices, Safari browser commands an 80-90% market share, while Google's Chrome dominates 70-80% of Android users. This concentration of power extends far beyond simple market share numbers, it represents control over the primary gateway through which UK consumers access digital services and businesses reach customers.

The UK's app economy has become a crucial economic driver, generating an estimated 1.5% of the country's GDP and supporting around 400,000 jobs. The fintech sector alone has attracted over £18 billion in investment over the past three years, with more than half of all UK unicorns operating in this space. Mobile gaming contributes nearly £2 billion annually to the economy, highlighting how integral these platforms have become to the UK's digital future.

Key areas of concern. The CMA's investigation uncovered several problematic practices that it believes are harming competition and innovation. Both companies operate opaque app review processes that create uncertainty for developers, potentially using data gathered during reviews to benefit their own services. App store search rankings may favor the companies' own applications, while commission rates of up to 30% on in-app purchases, combined with restrictions on directing users to external payment systems, could make some business models unviable.

Apple faces particular criticism for its closed ecosystem approach. Developers cannot offer apps through alternative stores or direct downloads, and must use Apple's own browser engine software for alternative browsers. The company's restrictions on developers' access to iPhone and iPad functionality affects everything from digital wallets and AI services to how smartwatches, gaming headsets, and health-tech tools integrate with Apple devices.

While Google permits alternative app stores and direct app installation, the CMA found that friction and warning screens effectively discourage these practices. Google's agreements with device manufacturers like Samsung and Motorola influence which apps come pre-installed and set as defaults, giving Google's services an inherent advantage.

Proposed solutions. The CMA's roadmap focuses on three key areas of intervention for app distribution, a key early priority for the CMA. The regulator wants to ensure fair and transparent app review processes, clear app store rankings, and the ability for developers to direct users outside app stores for purchases, potentially driving innovation and reducing costs.

Apple faces specific requirements around interoperability, with the CMA demanding fair consideration of developers' requests for access to device functionality. This could enable UK fintech companies to bring innovative digital wallets to market and allow better integration of connected devices like smartwatches and gaming headsets.

Both companies would face measures to improve consumer choice, ensuring users have genuine alternatives to Apple and Google's own services rather than being steered toward them through default settings and design choices. The regulator also plans to explore factors important for AI services development, ensuring fair competition in voice assistants and other emerging technologies.

International context and timeline. The CMA's actions reflect a global trend toward increased regulation of mobile platforms. Similar measures in the US have already delivered benefits, with Spotify now offering in-app links for audiobooks and Proton cutting prices by up to 30% for its privacy and encryption services after being allowed to direct users to external payment systems. EU consumers can now choose from various digital wallets offering innovative features like integrated cashback.

The CMA will continue to consult with stakeholders on these provisional designations through October 2025, with final decisions expected then. If Apple and Google are designated with strategic market status, the CMA expects to begin consulting on priority interventions from autumn 2025, with updated roadmaps planned for the first half of 2026.

This represents the most significant regulatory challenge yet to Apple and Google's mobile platform dominance in the UK, with potentially far-reaching implications for how millions of consumers use their devices and how thousands of UK businesses reach their customers.

Companies: Apple, Inc.; Google, Inc.

News: AINews TechnologyInternet