The U.K.’s Competition and Markets Authority (CMA) officially announced on Wednesday a landmark proposal to designate Apple and Google’s mobile platforms with “strategic market status.” This regulatory shift grants the U.K. government sweeping powers to overhaul how these tech giants operate their app stores and mobile software ecosystems, aiming to dismantle barriers to competition.
Regulating the Digital Duopoly
By enforcing this new status, the CMA seeks to foster a more open and competitive environment within the app economy, ultimately expanding user choice. The regulator intends to address long-standing grievances, including:
- Commission rates imposed on in-app purchases;
- Opaque app review processes and ranking algorithms;
- Restrictive developer access to proprietary mobile technologies;
- Default settings that stifle market competition.
Industry Giants Push Back
Both Apple and Google have formally contested these proposals. Apple, in particular, argues that the mandated changes would fundamentally compromise the security and privacy of its users. The companies now have until October to present their final cases before the CMA issues its definitive ruling.
Critics Call for Stronger Action
The proposal has received a lukewarm reception from industry skeptics. Tim Sweeney, CEO of Epic Games—a frequent opponent of the tech giants in antitrust litigation—has expressed significant disappointment with the roadmap. Sweeney contends that the current draft fails to sufficiently clear the path for third-party mobile app stores, such as the Epic Games Store, to compete effectively on these platforms.