Apple and Google Face Tougher UK Rules as Regulators Tighten Grip on Tech Giants
Britain’s competition regulator has announced stricter oversight of Apple and Google’s mobile ecosystems, a move signaling the country’s growing determination to rein in the market power of global tech giants. The Competition and Markets Authority (CMA) said both companies have been granted “strategic market status” (SMS), marking the conclusion of a nine-month investigation into their dominance across mobile operating systems, app stores, and browsers.
The designation gives the CMA new powers to impose rules aimed at increasing competition and consumer choice. According to Will Hayter, executive director for digital markets at the CMA, Apple and Google’s platforms “are used by thousands of businesses across the economy,” but their strict policies may be “limiting innovation and competition.” The regulator has long described the pair as holding an “effective duopoly” in the UK smartphone market, with nearly every handset running either Apple’s iOS or Google’s Android.
Both companies have criticized the move, calling it heavy-handed and unnecessary. Google said it was “disappointed” with the decision, warning that the uncertain new rules could affect its Android operating system, Play Store, and Chrome browser. “The CMA’s next steps will be crucial if the UK’s digital markets regime is to remain pro-growth and pro-innovation,” said Oliver Bethell, Google’s senior competition director. Apple, meanwhile, argued that EU-style regulation could compromise user security and privacy, resulting in “weaker protection, slower feature rollouts, and a fragmented experience.”
The UK’s new measures mirror the European Union’s Digital Markets Act (DMA), which seeks to prevent big tech firms from abusing their dominant positions and can impose hefty financial penalties for violations. Apple has urged UK regulators not to follow the EU model, citing the “negative impact” such laws have had on users in Europe. Despite these warnings, the CMA insists that the changes are needed to level the playing field and encourage fair competition in digital markets.
This announcement follows a similar move earlier in October when Google was given SMS designation for its online search dominance. The company has recently pledged a £5 billion ($6.7 billion) investment in the UK to support artificial intelligence development and employs over 7,000 staff in the country, while Apple has nearly 8,000. As the UK aligns itself with global efforts to check big tech’s power, Apple and Google now face a future of tighter scrutiny — and potentially transformative changes to how their mobile platforms operate.
source: The Guardian