Apple and Google could face big fines as UK watchdog targets mobile platform dominance

The UK’s Competition and Markets Authority (CMA) has announced plans to limit Apple and Google’s dominance in the mobile ecosystem, citing their effective duopoly in app distribution and smartphone services. This comes after the regulator stated that it intends to designate both companies as having “strategic market status,” clearing the way for legally binding changes aimed at increasing competition on their platforms.

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The announcement comes amid the ongoing investigation into the US tech giants started earlier this year. The CMA said its intervention will first target the app store operations which are critcised by the developers for the high fees and controversial review process. It aims to ensure fair conditions for the app developers, businesses and consumers. The regulator is also planning for restrictions placed on digital wallets, particularly those that prevent rival fintech firms from fully competing.

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“We’ve identified opportunities for more innovation and choice in these markets. Time is of the essence: as competition agencies and courts globally take action, it’s essential the UK doesn’t fall behind,” said CMA chief executive Sarah Cardell as quoted by the reports.

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Despite the move, the CMA refrained from imposing more sweeping reforms, such as requiring Apple to allow third-party app stores or alternative in-app payment methods, which are now deferred until at least 2026.

On the other hand, both Apple and Google have responded to the CMA’s announcement. Apple has stated that the proposed rules can compromise the user’s privacy and stifle the innovation. “We’re concerned the UK’s proposed rules could force us to give away our technology to foreign competitors,” said company as per the reports/

Google, meanwhile, described the move as “disappointing and unwarranted,” stating its open-source model and role in supporting over 457,000 UK jobs and £9.9 billion in developer revenue in 2022.

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Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile