Britain’s Competition and Markets Authority (CMA) has announced that it has designated
and
as holding âstrategic market statusâ in the smartphone sector. This move means that the regulator will now have âmore powersâ to demand specific changes aimed at boosting competition and innovation.
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According to a report by news agency Reuters, the CMA stated that Apple’s iOS and Google’s Android platforms are used by millions of businesses and consumers, but current rulesâsuch as restrictions within their app storesâmay be “limiting innovation and competition.”
The regulator further emphasised that this action aligns with steps being taken by the US, the European Union (EU), and Japan against the two tech giants.
The CMA clarified that the designation is not a finding of wrongdoing and does not introduce immediate requirements. Instead, it will now consider âproportionate, targeted interventionsâ to ensure the platforms are open to effective competition.
Google and Apple respond to new designation
Google, which received its first strategic market status designation earlier this month for its search operations, called the decision âdisappointing, disproportionate and unwarranted.â
Oliver Bethell, Google’s senior competition director, stated in a blog post, âThe CMA’s next steps will be crucial if the UK’s digital markets regime is to meet its promise of being pro-growth and pro-innovation.â
Meanwhile, Apple responded by saying it âworked tirelesslyâ to create the best products and user experience. The company urged the UK not to follow the EU’s example of intervention, which it claimed had left users with weaker privacy and security, and delayed access to new features.
âWe’ve seen the impact of regulation on Apple users in the EU, and we urge the UK not to follow the same path,â Apple stated.