The CMA Flexes Its New Powers

The U.K.’s Competition and Markets Authority (CMA) is stepping into the ring with a heavyweight punch, launching “strategic market status” (SMS) investigations into the mobile ecosystems of Apple and Google. This move is part of the newly enacted Digital Markets, Competition and Consumers (DMCC) Act, which came into effect in January 2024. The Act empowers the CMA to designate companies as having strategic market status if they’re deemed overly dominant, and to propose remedies to level the playing field.

“This is a pivotal moment for competition in the digital markets. The CMA is not just watching—it’s acting.”

Alex Haffner, Competition Partner at Fladgate

Why This Matters

The CMA’s probe isn’t just another regulatory headache for Big Tech—it’s a seismic shift in how the U.K. plans to tackle monopolistic practices. The investigations will focus on:

• Market Dominance: Are Apple and Google using their control over operating systems, app stores, and browsers to favor their own services?
• Barriers to Entry: What’s stopping competitors from breaking into these ecosystems?
• Developer Terms: Are unfair conditions stifling innovation and competition?

The Backstory: A Long Time Coming

This isn’t the CMA’s first rodeo with Apple and Google. Back in 2021, the regulator launched investigations into their mobile app ecosystems. While those probes were paused in August 2023, the CMA made it clear that it was only a matter of time before it returned with sharper tools. In November 2023, an inquiry group found that Apple’s browser policies and its pact with Google were “holding back innovation” in the U.K.

“Apple’s restrictions on third-party browsers are a clear example of how dominant players can stifle competition.”

CMA Inquiry Group Report, November 2023

What’s at Stake?

If Apple and Google are found to have strategic market status, the CMA could impose game-changing remedies, such as:

• Forcing the companies to open up key functionalities to third-party developers.
• Making it easier for users to pay for services outside of Apple and Google’s app stores.

The Bigger Picture: A Pro-Growth, Pro-Tech U.K.

This investigation comes amid a broader shift in the U.K.’s regulatory landscape. The appointment of ex-Amazon executive Doug Gurr as interim chair of the CMA signals a push to balance regulation with a pro-growth agenda. As Alex Haffner noted, the CMA is under pressure to ensure its actions align with the government’s vision of a “pro-growth, pro-tech nation.”

“The CMA’s challenge is to regulate without stifling innovation. It’s a tightrope walk, but one that could redefine the tech landscape.”

TechCrunch Analysis

What’s Next?

The CMA has opened a three-week window for stakeholders to submit comments. The outcomes of the investigations are expected by October 22, 2025. Both Apple and Google have pledged to cooperate, but the stakes couldn’t be higher.

“We believe in thriving markets where innovation can flourish. Our focus is always on the trust of our users.”

Apple Spokesperson

“Android’s openness has democratized access to smartphones and apps. We’ll work constructively with the CMA to protect choice and growth.”

Oliver Bethell, Google’s Senior Director for Competition

Final Thoughts

This investigation is more than just a regulatory check—it’s a battle for the future of innovation and competition in the digital age. The CMA’s actions could set a precedent for how tech giants are regulated worldwide. Buckle up—this is just the beginning.