U.K. designates Apple and Google as having ‘strategic market status,' opening door for more regulation

Core Viewpoint - The U.K.'s Competition and Markets Authority (CMA) has designated Apple and Google with strategic market status in their mobile platforms, allowing for targeted regulatory actions to enhance competition in the sector [1][4]. Group 1: Regulatory Findings - The CMA's investigations into Apple and Google began in January, with proposed interventions made in July, leading to the conclusion that both companies possess "substantial, entrenched market power" in their mobile platforms [2]. - The CMA consulted over 150 stakeholders and found that U.K. mobile device owners are unlikely to switch between Apple and Google's ecosystems once adopted, indicating a lack of competition [2][3]. - The CMA noted that new technologies, such as AI, are "unlikely to eliminate" the market power of Apple and Google over the five-year designation period [3]. Group 2: Implications of Designation - The designation of strategic market status does not imply wrongdoing by Apple or Google but allows the CMA to consider interventions to ensure effective competition and fair treatment for consumers and businesses [4]. - The CMA expressed concerns that the rules of Apple and Google's platforms may limit innovation and competition, affecting thousands of businesses that rely on these platforms to market and sell products [3]. Group 3: Company Responses - Apple has warned that the CMA's decision could lead to delays in users receiving new features, citing past experiences with Apple Intelligence [5]. - Google has expressed disagreement with the rationale behind the CMA's decision, indicating a pushback against the regulatory findings [5].