UK Investigates Apple and Google's Market Power

CMA Investigates Apple and Google’s Mobile Ecosystems

The Competition and Markets Authority (CMA) in the U.K. has initiated investigations to determine the “strategic market status” (SMS) of both Apple and Google’s mobile ecosystems.

These investigations are a direct result of the new Digital Markets, Competition and Consumers (DMCC) Act. This legislation was approved last year and became operational in January.

The DMCC Act and its Powers

The DMCC Act grants the CMA enhanced authority to designate companies with strategic market status. This designation is applied to firms considered excessively dominant within their respective markets.

Should a company be designated, the CMA is empowered to propose and implement remedies and interventions designed to foster greater competition.

Following the Google Search Probe

Last week, the CMA announced its inaugural SMS investigation, focusing on the market share held by Google Search. Reports indicate this share is approximately 90%.

At the time of that announcement, the CMA indicated a second investigation would follow in January. This second investigation will now assess whether Apple and Google possess strategic market status within their mobile environments.

Scope of the Mobile Ecosystem Investigation

The scope of this investigation encompasses key areas of the mobile experience. These include browsers, app stores, and the operating systems themselves.

The CMA will be evaluating the degree of control Apple and Google exert over these crucial components of the mobile landscape.

Ultimately, the goal is to ensure a fair and competitive market for both consumers and developers within the U.K.’s mobile sector.

Re-evaluation of Mobile App Ecosystems

The recent announcement from the Competition and Markets Authority (CMA) was largely anticipated. Investigations into the mobile app ecosystems of both Apple and Google, initially launched in 2021, were previously concluded in August. However, the CMA indicated that this conclusion represented a temporary pause.

The authority signaled its intention to utilize newly granted powers to address competitive issues concerning the two dominant forces within the mobile services sector. This proactive stance demonstrates a commitment to fostering a more equitable market.

Concerns Regarding Innovation

An inquiry group established by the CMA determined that Apple’s mobile browser policies, alongside an agreement with Google, were actively “holding back innovation” within the United Kingdom. The investigation highlighted a key restriction imposed by Apple.

Specifically, third-party mobile browsers are compelled to utilize Apple’s WebKit browser engine. This limitation hinders their functionality compared to Apple’s native Safari browser, thereby impeding their ability to effectively compete and differentiate themselves in the market.

Scope of the New Investigation

The CMA has formally initiated a new investigation focusing on the level of competition both between and within the mobile ecosystems of Apple and Google. This includes an assessment of potential barriers that may be hindering the entry and success of competing entities.

A central question will be whether either company is leveraging its dominant position in areas such as operating systems, app distribution, or browsers to prioritize its own applications and services. Many of these are pre-installed and cannot be easily removed by users.

Developer Terms and Conditions

Furthermore, the CMA will scrutinize whether either Apple or Google is imposing “unfair terms and conditions” on developers seeking to distribute their applications through their respective app stores. This is a critical aspect of ensuring a level playing field.

Expert Commentary

Alex Haffner, a competition partner at the U.K. law firm Fladgate, described the announcement as “wholly expected.” He emphasized that the development of this new probe, in light of broader changes within the U.K. regulator, is the more significant aspect.

Shifting Regulatory Landscape

This week, the CMA appointed Doug Gurr, a former Amazon executive, as interim chair. This appointment is part of a larger transformation as the U.K. aims to establish itself as a nation supportive of growth and technological advancement by reducing regulatory burdens.

Pro-Growth Agenda

Haffner stated that the current changes within the CMA, and the clear direction from central government to align regulation with a pro-growth agenda, are particularly noteworthy. He anticipates this focus will be prominent as the CMA implements the Digital Markets, Competition and Consumers (DMCC) regime.

He further suggested that these principles will heavily influence the CMA’s interactions with major technology companies moving forward.

Possible Resolutions

A three-week comment period has been initiated following today’s announcement, allowing interested parties to provide feedback as part of the ongoing investigations. Results from these investigations are anticipated to be revealed by October 22, 2025. Should Apple and Google be classified as having strategic market status, potential solutions could involve mandating increased access to crucial functionalities for third-party developers, thereby fostering greater competition.

Furthermore, alterations to payment systems, enabling transactions outside of the current Apple and Google app store frameworks, are also being considered.

Responding to inquiries from TechCrunch, a representative from Apple stated the company remains committed to “constructive engagement with the CMA” throughout the investigation process.

“Apple is dedicated to fostering vibrant and competitive markets that encourage innovation,” the spokesperson affirmed. “We encounter competition across all sectors and regions where we operate, and user trust remains our primary concern. Within the U.K. specifically, the iOS app ecosystem sustains hundreds of thousands of employment opportunities and empowers developers of all sizes to connect with users on a secure platform.”

Oliver Bethell, Google’s senior director for competition, expressed a similar viewpoint, stating the company “will collaborate constructively with the CMA.”

“The open nature of Android has been instrumental in broadening consumer choice, lowering costs, and expanding access to smartphones and applications. It stands as the sole instance of a thriving and sustainable open-source mobile operating system,” Bethell explained in a blog post released today. “We advocate for a path forward that does not impede choice or limit opportunities for U.K. consumers and businesses, and one that safeguards the U.K.’s economic growth.”