What's happened
On July 23, 2025, the UK’s Competition and Markets Authority (CMA) proposed designating Apple and Google with 'strategic market status' to regulate their mobile platforms. The CMA aims to curb high app store fees, improve competition, and increase interoperability. Final decisions are expected in October, with both companies opposing the measures citing security and innovation concerns.
What's behind the headline?
UK’s Strategic Market Status: A Turning Point
The CMA’s move to grant Apple and Google strategic market status marks a decisive step toward regulating entrenched tech giants dominating mobile ecosystems. This status enables the CMA to impose conduct rules targeting app store fees, opaque review processes, and platform favoritism.
Balancing Competition and Security
Apple and Google’s resistance centers on potential risks to user privacy and security, a common argument in tech regulation debates. However, the CMA’s tailored, iterative approach contrasts with the EU’s broader Digital Markets Act, aiming to foster innovation without stifling it.
Developer and Consumer Impact
Developers stand to benefit from clearer, fairer app store policies and reduced commission fees, potentially spurring innovation and lowering costs. Consumers may gain from increased choice and interoperability, such as the ability to steer away from default app stores and use alternative payment methods.
Limitations and Criticism
The CMA’s decision to delay ruling on allowing apps to bypass Apple’s App Store entirely has drawn criticism from developers like Epic Games, who see this as a missed opportunity to fully open the market.
Outlook
Final decisions in October will clarify the scope of regulation. The CMA’s approach signals a global trend toward scrutinizing Big Tech’s gatekeeper roles, with the UK positioning itself as a proactive regulator. Users and developers should prepare for a more competitive app ecosystem, though tensions over security and innovation will persist.
What the papers say
The Guardian’s Mark Sweney highlights the CMA’s intent to promote "a proportionate, pro-innovation approach" focusing on app store fairness and user choice, quoting CMA chief Sarah Cardell: "Time is of the essence... it’s essential the UK doesn’t fall behind." Meanwhile, Ars Technica, citing the Financial Times, details the CMA’s plan to trim up to 30% fees and enforce interoperability, but notes Apple and Google’s strong opposition, with Apple warning the rules could "undermine privacy and security protections" and Google calling the move "disappointing and unwarranted." AP News emphasizes the CMA’s findings of an "effective duopoly" with concerns over unpredictable app reviews and high commissions, while TechCrunch reports on the CMA’s roadmap and the pushback from Apple and Google, including Epic Games CEO Tim Sweeney’s disappointment over the delayed decision on alternative app stores. Politico adds context on Apple’s ongoing EU Digital Markets Act challenges and Google’s defense of Android’s openness. Together, these sources paint a picture of a regulatory battle balancing market fairness, innovation, and security concerns.
How we got here
The CMA launched investigations in early 2025 into Apple’s iOS and Google’s Android platforms, citing their near-duopoly in the UK smartphone market. Concerns include high commissions on in-app purchases, opaque app review processes, and preferential treatment of their own services. The UK’s Digital Markets, Competition and Consumers Act underpins these regulatory efforts.
Go deeper
- What does 'strategic market status' mean for Apple and Google?
- How will these regulations affect app developers and consumers?
- Why are Apple and Google opposing the CMA’s proposals?
Common question
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UK Moves to Break Up Tech Giants: What Does This Mean for Apple and Google?
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Could UK’s move against Apple and Google inspire other countries?
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More on these topics
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Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
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Google LLC is an American multinational technology company that specializes in Internet-related services and products, which include online advertising technologies, a search engine, cloud computing, software, and hardware.
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The Competition and Markets Authority is a non-ministerial government department in the United Kingdom, responsible for strengthening business competition and preventing and reducing anti-competitive activities.
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Epic Games, Inc. is an American video game and software developer and publisher based in Cary, North Carolina. The company was founded by Tim Sweeney as Potomac Computer Systems in 1991, originally located in his parents' house in Potomac, Maryland.
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Timothy Dean Sweeney is an American video game programmer, billionaire businessman and conservationist, known as the founder and CEO of Epic Games, and the creator of the Unreal Engine, a game development platform.