UK Competition Regulator Launches New Investigation into Apple and Google

The UK’s Competition and Markets Authority (CMA) is once again investigating Apple and Google, this time focusing on their “strategic market status” (SMS) in mobile ecosystems. The CMA is using its new powers granted under the Digital Markets, Competition, and Consumers Act 2024 to assess whether these tech giants hold significant market power and how it impacts users and businesses.

Market Share and Dominance

In the UK, Apple’s iOS holds 47.7% of the mobile operating system market share as of December 2024, with Android leading slightly at 51.9%, according to Statcounter. The CMA is investigating whether the dominance of Apple and Google in areas like app distribution, mobile browsers, and operating systems restricts competition and innovation.

What Is “Strategic Market Status”?

“Strategic market status” refers to a company’s significant influence over certain digital activities—such as Apple potentially leveraging its App Store to minimize competition. The CMA believes this could harm consumers and businesses, and it is considering whether corrective actions are needed.

Investigative Timeline

The investigation will take place in phases:

• Stage 1: Evidence gathering (January–March). The CMA is inviting public comments between January 24–28.
• Stage 2: Engagement with Apple and Google (April–July). This will involve assessing their conduct and determining potential requirements.
• Stage 3: Final decision by October 22, after allowing Apple and Google to respond.

CMA’s Goals

CMA Chief Executive Sarah Cardell stated that the investigation aims to increase competition and drive innovation in the UK’s digital market. “Better competition could also boost growth here in the UK,” she added.

Apple’s Response

Apple emphasized its commitment to competitive markets, stating that the App Store ecosystem has created hundreds of thousands of jobs in the UK. “We face competition in every segment and jurisdiction where we operate, and our focus is always the trust of our users,” Apple said in a statement.

Previous CMA Investigations

This isn’t the first time the CMA has scrutinized Apple and Google:

• In 2021, a Mobile Ecosystems Market Study found that Apple and Google had a duopoly, restricting competition in areas like browsers and mobile cloud gaming.
• Apple later adjusted its rules to allow cloud gaming apps, prompting the CMA to decide against intervening at the time.

However, with its new powers to enforce changes, the CMA now has the authority to compel SMS companies to address competition issues, such as requiring interoperability between services.

What’s Next?

While Apple and Google are no strangers to regulatory pressure, this investigation carries more weight thanks to the CMA’s enhanced authority. If the regulator deems that their market positions harm competition, it can mandate significant changes to level the playing field.

The CMA’s final decision will determine if—and how—it applies pressure to reshape digital markets dominated by these tech giants.