Apple and Google face a significant shift in the UK: The UK competition authority CMA announced that both US corporations will be granted "Strategic Market Status" (SMS) – a step that will set tight digital guidelines for them in the future. The measure is part of the new Digital Markets regime and aims for regulation similar to the Digital Markets Act (DMA) already existing in the EU.
The CMA wants to prevent Apple and Google, among other things, from using their operating systems and app stores to favor their own offerings or restrict third-party providers. Developers should also be able to directly refer users to external payment methods in the future. So far, Apple and Google collect up to 30 percent commission on digital transactions within their app stores.
A final decision on SMS classification is to be made in October. Subsequently, the CMA intends to formulate specific rules - for example, for better interoperability of digital payment services or the opening of smartwatch ecosystems. Voice assistants such as Siri and Gemini are also to be regulated to ensure innovation space for third parties.
Sarah Cardell, head of the CMA, emphasized that it is about "targeted and proportionate measures to ensure that British app developers can continue to be global leaders". At the same time, she warns: "Time is running out. If action is taken worldwide, the United Kingdom must not fall behind.
The reactions of the tech companies are predictably critical. Apple fears losses in security and privacy. They are concerned "that the proposed rules could limit our ability to innovate and force us to share technologies at no cost with foreign competitors." Google described the initiative as "disappointing and unfounded" and calls for evidence-based regulation.
As early as June, Google's search engine was the first product to fall under the new British law. The Digital Markets, Competition and Consumers Act allows the CMA to regulate companies with SMS status for five years. In the event of violations, fines of up to ten percent of global annual revenue are threatened.
