The Competition and Markets Authority (CMA) has officially designated both Apple and Google with strategic market status (SMS) in their mobile platforms, which include operating systems, app distribution, and browsers on smartphones and tablets. This decision follows a thorough investigation initiated in January and proposed decisions published in July.

The CMA's new digital markets competition regime, effective from January 1, 2025, allows for targeted actions to improve competition in digital markets, fostering innovation and growth in the UK economy. The authority engaged with over 150 stakeholders and analyzed feedback, confirming that both companies possess substantial market power and strategic significance.

Key findings indicate that UK mobile device users predominantly rely on either Apple or Google platforms, with minimal likelihood of switching between them. The CMA noted that mobile platforms are essential for accessing content via apps, and businesses must navigate both ecosystems to reach consumers effectively.

While the designation of SMS does not imply any wrongdoing by Apple or Google, it empowers the CMA to consider interventions aimed at ensuring fair competition and treatment for consumers and businesses reliant on these platforms. The app economy, which contributes significantly to the UK’s GDP and job market, underscores the importance of maintaining competitive dynamics in this sector.

Will Hayter, Executive Director for Digital Markets at the CMA, emphasized the necessity for these markets to function effectively to support business investment and innovation. The CMA's decision aligns with global efforts, as jurisdictions like the US, EU, and Japan are also taking steps to regulate mobile platforms.