The UK's Competition and Markets Authority (CMA) has designated Apple and Google's mobile operating systems, app stores, and browsers as having "strategic market status" (SMS), necessitating stricter regulatory oversight. This designation follows an investigation that found both companies possess substantial and entrenched market power, with users largely confined to their respective platforms.
The CMA's decision, made under the new Digital Markets, Competition and Consumers Act 2024, aims to ensure these dominant platforms function effectively for businesses, fostering innovation and economic growth. The app economy represents a significant portion of the UK's GDP and employment, making it crucial for these markets to operate fairly.
Proposed changes under consideration include enabling users to be directed away from app stores for purchases, addressing app developers' long-standing concerns about commission fees. The CMA also seeks to ensure users have genuine choice over services on their devices, such as digital wallets.
Both Google and Apple have criticized the CMA's decision. Google expressed disappointment, deeming the desig... download the app to read more
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