UK CMA Declares Apple & Google Have Strategic Market Status (SMS): The Future of Mobile Competition and Security In this pivotal episode of "Upwardly Mobile," we break down the monumental decision by the UK Competition and Markets Authority (CMA) to officially designate Apple and Google with Strategic Market Status (SMS) in their respective mobile platforms. This move is set to reshape digital markets across the UK and has massive implications for app developers, businesses, and mobile security worldwide. Key Takeaways from the CMA's Decision (Published 22 October 2025): The CMA launched its investigations in January 2025 under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), aiming to address the "unprecedented market power" held by a few large digital firms.
- SMS Designation Confirmed: Following consultation with over 150 stakeholders, the CMA confirmed that both Apple and Google meet the legal tests for having Substantial and Entrenched Market Power (SEMP) and a Position of Strategic Significance (POSS) in their mobile platforms.
- Scope of Mobile Platforms: The designation applies to the holistic Mobile Platform provided by each company, grouping together highly interconnected digital activities:
- Apple: Smartphone Operating System (iOS), Tablet Operating System (iPadOS), Native App Distribution (App Store), and Mobile Browser and Browser Engine (Safari and WebKit).
- Google: Mobile Operating System (Android), Native App Distribution (Play Store), and Mobile Browser and Browser Engine (Chrome and Blink).
- Market Dominance: CMA findings confirmed that almost all UK mobile device holders use either Apple or Google's platform. Users are unlikely to switch between them, reinforcing their dominance. Furthermore, to reach both user bases, businesses must distribute their content through both platforms, effectively making them "must-have" channels.
- Market Entrenchment: The CMA concluded that competitive constraints are currently limited. Despite the rapid deployment of technologies like Artificial Intelligence (AI), these developments are deemed unlikely to eliminate Apple or Google’s market power over the five-year designation period.
- Economic Impact: The designation acknowledges the crucial role of these platforms, noting that the UK app economy generates an estimated 1.5% of the UK’s GDP and supports about 400,000 jobs, encompassing sectors like FinTech and mobile gaming.
What Happens Next? The SMS designation itself is not a finding of wrongdoing and does not introduce immediate new requirements. However, it acts as the gateway for the CMA to introduce targeted and proportionate interventions, such as Conduct Requirements or Pro-Competition Interventions, designed to ensure open choices, fair dealing, and trust and transparency within these vital digital activities. This action mirrors regulatory efforts globally, including the EU’s Digital Markets Act (DMA) and legal actions in the US and Japan. 🎧 Sponsored by Approov We are entering a "pivotal era for mobile technology" where regulatory interventions like the CMA’s SMS designation and the EU's DMA are weakening the centralized control over app distribution held by Apple and Google. This shift "opens the floodgates for alternative app stores, sideloading, and direct-to-consumer models". As mobile security risks move beyond platform constraints, secure your applications and APIs with a truly cross-platform, developer-centric solution. Visit approov.io for more information on how to implement modern app and API protection. 🔗 Useful Links & Resources
