Today: Feb 12, 2025

CMA to investigate Apple and Google’s mobile ecosystems: What it means for you

The UK’s CMA has launched parallel investigations into Apple and Google’s dominance over mobile ecosystems, including app stores, operating systems, and browsers. With 94% of UK adults relying on smartphones and £28 billion generated annually by app developers, the stakes are high. The probes will explore whether these tech giants stifle competition, exploit developers, and limit consumer choice—potentially reshaping how millions interact with their devices and digital services.
Person Holding a Smartphone
3 weeks ago

The UK’s Competition and Markets Authority (CMA) has announced parallel investigations into the mobile ecosystems of tech giants Apple and Google. These investigations will assess whether the companies hold “strategic market status” (SMS) in areas like operating systems, app stores, and mobile browsers. But what does this mean for the average user, and why should we care? Let’s break it down.

Let’s start with a statistic: 94% of UK residents aged 16 and older own a smartphone. That’s 56 million people relying on these pocket-sized marvels daily—for everything from communication to banking, shopping, and streaming. On average, we spend about three hours a day on our devices.

Behind these sleek gadgets lie two dominant players: Apple’s iOS and Google’s Android. Their operating systems power virtually every smartphone in the UK, and their app stores—Apple’s App Store and Google Play—are gateways to the apps we rely on. Add to that their mobile browsers, Safari and Chrome, and you have two companies steering a significant portion of our digital lives.

The stakes are even higher for businesses. Nearly 15,000 UK companies are involved in app development, generating a staggering £28 billion in revenue annually. From digital wallets to smart devices like wearables, these innovations rely heavily on access to Apple and Google’s ecosystems.

The CMA is investigating several critical issues:

Competition Barriers: Are Apple and Google using their dominant positions to stifle competition? For example, pre-installed apps and exclusive features can make it tough for rival products to gain traction.

Market Leverage: The CMA will explore whether these companies use their ecosystems to promote their own services unfairly. Think of Apple’s tight integration of its App Store with iOS or Google’s promotion of its own apps on Android devices.

Exploitative Practices: Are developers being forced into unfair terms when distributing their apps on these platforms? And are users being nudged into choices that benefit Apple and Google rather than themselves?

For instance, app developers often face high commission fees—up to 30%—for transactions made through Apple’s App Store or Google Play. Such practices have sparked debates globally, with some alleging they hurt competition and innovation.

What could change?

If Apple or Google is found to hold SMS, the CMA could enforce new rules. Potential measures include:

-Requiring the companies to allow users to download apps from sources other than their official app stores.

-Mandating easier payment methods outside of Apple’s and Google’s systems.

-Opening up access to critical functionalities for developers, leveling the playing field.

These changes could benefit consumers by offering more choices and potentially lower prices. For businesses, it could mean fairer opportunities to innovate and grow.

The UK isn’t alone in scrutinizing tech giants. Similar concerns have arisen worldwide, from the EU’s Digital Markets Act to the U.S. Department of Justice’s lawsuits against Google. The CMA’s investigations align with broader efforts to ensure big tech operates in ways that foster competition and benefit consumers.

The CMA is inviting comments from stakeholders—including device manufacturers, software developers, and users—until February 12, 2025. A decision is expected by October 22, 2025.

If you’re wondering how this might impact you, think about the apps you use, the payments you make, and the choices you have on your device. These investigations could shape all of that—and more.

So, whether you’re an app developer, a tech enthusiast, or just someone who can’t put down their smartphone, keep an eye on this space. The future of mobile ecosystems is at stake, and the CMA’s actions could set a precedent for the entire digital world.

Fabrice Iranzi

Journalist and Project Leader at LionHerald, strong passion in tech and new ideas, serving Digital Company Builders in UK and beyond
E-mail: iranzi@lionherald.com

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