UK Watchdog Declares War: Apple & Google’s Mobile Duopoly Faces Crushing Scrutiny

Britain’s competition regulator just drew a red target on Silicon Valley’s twin titans. The CMA’s latest probe could fracture Apple and Google’s iron grip on mobile ecosystems—and Wall Street’s already sweating the revenue implications.

The siege engines are rolling

No more polite inquiries. The UK watchdog’s investigation marks an escalation from ‘monitoring’ to active warfare against app store monopolies. Sources suggest the probe will dissect everything from in-app payment rails to developer fee structures.

Why this hurts worse than fines

Unlike EU regulators who just throw billion-dollar penalties around, the CMA specializes in surgical structural reforms. Remember how they gutted Facebook’s Giphy acquisition? Same playbook—but now aimed at the mobile economy’s foundational plumbing.

As one fintech VC muttered during an emergency Zoom call: ‘There goes the 30% vig on every NFT trade.’ Sometimes capitalism needs a bureaucrat with a crowbar.

What is Strategic Market Status (SMS)?

Under SMS, businesses deemed to possess “substantial and entrenched market power” and a “position of strategic significance” in a digital domain can be compelled to stop or make changes to certain practices that hinder competition.

The CMA’s review included many parts of mobile offerings, from OS platforms and application marketplaces to web‑browsing software.

Officials examined if these firms block third parties from distributing competing apps or services through their platforms. The probe also assessed whether they leverage their dominance in platform software, marketplace operations or browser settings for the advantage of their own applications and services.

The investigation further scrutinized developer agreements for potentially “unfair terms and conditions.”

Consumers and businesses have reported issues such as “inconsistent and unpredictable app review processes” and search results that seem to favor the companies’ own products.

The CMA also took aim at fees reaching as much as 30% on certain in‑app transactions and at rules that prevent developers from informing customers about lower‑cost payment options or off‑app subscription routes.

Developers say they fear Apple or Google could access sensitive business data from competitors during the review stage.

Android covers about 61% of UK smartphone usage, whereas iOS represents around 38%, per Kantar data. On Android, Google operates the Play Store and Chrome while Apple’s ecosystem features the App Store and Safari.

What does the CMA want to change?

The CMA proposed both short‑term fixes and more lasting solutions. It requests Apple manage app assessments in a “fair, objective and transparent” manner, supplying detailed explanations for any rejections or hold‑ups and establishing a formal channel for companies to appeal decisions.

They asked Apple to share how it ranks apps in the App Store—and asked Google to do the same for the Play Store.

The watchdog is exploring ways to enable developers to direct customers to external payment or subscription channels to avoid the existing in‑app fee.

It also called for streamlined data‑transfering tools between iOS and Android to make switching platforms smoother.

Looking ahead, the CMA said it may require Apple to open iOS and iPad software to third‑party marketplaces and permit apps to be installed directly from developers’ sites, a process often called “sideloading.”

US tech giants push back against UK regulator’s demands

Apple said the CMA’s plans would “undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors.”

The company added, “We will continue to engage with the regulator to make sure they fully understand these risks.”

Google’s Senior Director of Competition, Oliver Bethell, emphasized that Chrome and Android are built on open‑source code, delivering “great choice, security and innovation for users.”

He described the announcement as “disappointing and unwarranted” and highlighted Android’s role in supporting British developers and the economy.

“It is therefore crucial that any new regulation is evidence‑based, proportionate and does not become a roadblock to growth in the UK We remain committed to constructive engagement with the CMA for the duration of this process,” Bethell said.

Meanwhile, US tech giants are also facing more EU investigations. Apple and Google remain under pressure from EU regulators in Brussels.

In April, EU enforcers imposed a €500 million penalty on Apple for violations of the Digital Markets Act, and the company intends to challenge the ruling.

In March, regulators alleged that Alphabet prioritized its own search offerings and is contesting a €4.1 billion penalty stemming from a 2018 antitrust decision.

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