UK designates Apple and Google as having ‘strategic market status,’ opening door for more regulation

The UK’s Competition and Markets Authority (CMA) said on Wednesday that it is designating Apple and Google with strategic market positions on their respective mobile platforms. The decision, which affects the company’s operating systems, app stores, browsers and browser engines, will enable the regulator to take steps aimed at increasing competition in the space.

The CMA launched and conducted investigations into Apple and Google in January Recommended The intervention in July indicated that technology giants could be designated with 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 concluded that Apple and Google have “substantial, entrenched market power and positions of strategic importance in their respective mobile platforms”.

Among other findings, the CMA found that UK mobile device owners are less likely to switch between Apple and Google’s mobile platforms after adopting their preferred ecosystem. It noted that both platforms require businesses to distribute apps through their app stores to reach consumers.

Notably, it also said that new technologies, such as AI, are “unlikely to eliminate the market power of Apple or Google over the five-year term.”

“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 consumers, but platform regulations can limit innovation and competition,” said Will Hayter, executive director of digital markets at CMA. statement.

The CMA added that there was no finding of wrongdoing in designating platforms including SMS. Instead, it allows the regulator to consider “proportionate, targeted interventions to ensure that mobile platforms are open to effective competition and that consumers and businesses that rely on Google and Apple can be confident that they are treated fairly.” announcement States

Apple and Google are there Push back against the decisionApple warned that the decision could mean UK users lose access to new features in a timely fashion — which has already happened with Apple Intelligence. Google also said that they did not see the rationale for this decision.

A statement released by Apple and shared with TechCrunch reads:

“Apple faces intense competition in every market where we operate, and we work tirelessly to create the best products, services and user experiences. The UK’s adoption of EU-style rules will leave users with poorer privacy and security, delayed access to new features and a fragmented, less seamless experience along the way.”

Updated with Apple’s comments.