The United Kingdom has officially designated Apple and Google as having “strategic market status,” a move that signals the government’s intention to implement more rigorous regulations on these tech giants. This designation is in direct response to increasing alarm about the anti-competitive impact these companies have on the mobile platform market.
We note that the Competition and Markets Authority (CMA) recently clarified that the designation should be for five years. It’s to create a framework to promote a competitive marketplace that drives innovation and rewards it, while maintaining consumer and business protections. To be clear, this does not mean that the CMA is looking to eliminate Apple and Google’s market dominance within this time period.
Will Hayter, a representative from the CMA, stated, “Apple and Google’s mobile platforms are used by thousands of businesses right across the economy to market and sell products and services to millions of customers, but the platforms’ rules may be limiting innovation and competition.” This underscores the careful balance that regulators need to uphold between allowing new innovations and stopping monopolistic behavior.
The CMA seeks to implement “proportionate, targeted interventions” aimed at ensuring mobile platforms remain open and contestable. Our aim is to make sure that consumers and businesses who depend on these platforms can trust they won’t be unfairly treated.
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Meanwhile, the U.K. has been making all due haste with its regulatory proposals. This change, while monumental for Apple and Google, will have big ramifications for the rest of the tech ecosystem and its stakeholders—not least the cities themselves.
