The UK classifies Apple and Google as having a “strategic market status”, opening the door to greater regulation

The UK Competition and Markets Authority (CMA) said on Wednesday that it is assigning Apple and Google strategic market positions in their mobile platforms. The decision, which affects companies’ operating systems, app stores, browsers and browser engines, will enable the regulator to take targeted action to boost competition in this area.

The Capital Markets Authority launched investigations into Apple and Google in January, and proposed interventions in July suggesting that the tech giants could be classified with a strategic market status (SMS). To reach its conclusions, the CMA consulted more than 150 stakeholders and held discussions with both Apple and Google. It then reached the decision that Apple and Google had “significant and entrenched market power and a strategically important position in their mobile platforms.”

Among other findings, the CMA found that UK mobile device owners are unlikely to switch between Apple and Google mobile platforms once their ecosystem of choice is adopted. She noted that both systems require companies to distribute apps through their app stores to reach consumers.

Notably, he also stated that new technologies, such as artificial intelligence, are “unlikely to eliminate the market power of Apple or Google within the five-year appointment period.”

“Apple and Google’s mobile platforms are used by thousands of businesses across the economy to market and sell products and services to millions of customers, but the platforms’ rules may limit innovation and competition,” Will Hayter, executive director of digital markets at the CMA, said in a statement.

The Capital Markets Authority added that privatizing platforms via SMS does not constitute a result of violations. Instead, it allows the regulator to consider “proportionate and targeted interventions to ensure that mobile platforms are open to effective competition, and that consumers and businesses that rely on Google and Apple can trust that they are being treated fairly,” the announcement says.

Apple and Google have opposed the decision, with Apple warning that the decision could mean UK users will lose access to new features in due course – something that has already happened with Apple Intelligence. Google also said it did not see the rationale for this decision.

The statement from Apple, which was shared with TechCrunch, reads:

“Apple faces fierce competition in every market we operate in, and we work tirelessly to create the best products, services and user experiences. The UK’s adoption of EU-style rules would undermine this, leaving users with weaker privacy and security, delayed access to new features, and a fragmented and less seamless experience. We have seen the impact of regulation on Apple users in the EU, and we urge the UK not to Follow the same path.”

Updated with Apple comment.