UK launches investigations into Apple and Google’s market dominance

January 23, 2025 — In a landmark move to enhance competition within the digital market, the UK Competition and Markets Authority (CMA) has today initiated separate investigations into the mobile ecosystems of tech giants Apple and Google. These inquiries will assess whether the companies hold a strategic market status (SMS) within their operating systems, app stores, and mobile browsers, an announcement by the CMA stated.

As smartphones and tablets continue to permeate daily life in the UK—where 94% of individuals aged 16 and older access mobile devices—the importance of these ecosystems has never been clearer. The CMA's investigations aim to safeguard fair competition for over 15,000 businesses dedicated to app development, which support an industry generating an estimated £28 billion in UK revenue.

CMA chief executive Sarah Cardell emphasized the need for competitive mobile environments. “The operating systems, apps, and browsers installed on our phones and tablet devices act as our gateway into the digital world,” Cardell stated, underscoring the significance of mobile technology in communicating, shopping, and consuming content. “More competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use.”

The investigations will scrutinize the influence Apple and Google wield over their respective ecosystems. Currently, both companies command nearly exclusive market positions, primarily through pre-installed operating systems—iOS and Android—and their own app stores that lead in app distribution. This dominance raises concerns about potential anti-competitive practices that may be limiting consumer choice and stifling innovation.

Key areas of focus for the CMA include the level of competition within and between the ecosystems, the potential use of market power to favor proprietary apps, and the fairness of terms imposed on app developers hoping to distribute their products. Investigators will also explore whether users are confronted with coercive 'choice architecture' that obscures true options available to them.

If the CMA determines that either Apple or Google meets the criteria for SMS—entrenched market power in digital activities linked to the UK, a position of strategic significance, and substantial global turnover—it may impose conduct requirements. These could potentially mandate that the companies allow greater access to fundamental functionality for third-party apps and create easier channels for users to download apps or pay for in-app content outside of Apple's and Google's proprietary systems.

The CMA plans to engage with a diverse array of stakeholders, including device manufacturers, software developers, and user groups, as part of its investigation. A transparent process will guide these engagements, with a final decision anticipated by October 2025.

This investigation follows an earlier inquiry into the mobile browsing market, where preliminary findings indicated that the business practices of Apple and Google could be detrimental to competition.

In anticipation of the outcomes, Cardell finally remarked, “Better competition could also boost growth here in the UK, with businesses able to offer new and innovative types of products and services on Apple’s and Google’s platforms."

As the CMA proceeds with its investigations, consumers, developers, and businesses alike are encouraged to voice their opinions prior to the February 12 deadline set for submissions.

For further updates, please refer to the CMA’s dedicated case pages regarding the ongoing investigations.

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