The Competition and Markets Authority (CMA) is considering giving Apple and Google Strategic Market Status, under the Digital Markets, Competition and Consumers Act (DMCC), a designation that would allow it to set new rules on how their platforms work. 

If the CMA goes ahead, Apple could be required to make its ecosystem more open, from interoperability mandates that would let third-party apps plug into its digital wallet or smartwatch features, to anti-steering rules enabling developers to bypass Apple’s App Store payments system. 

Transparency obligations for search rankings and app review processes are also under consideration.

Apple says such measures are dangerous. “We’re concerned these EU-style rules the UK is advancing are bad for users and bad for developers,” a company spokesperson said. 

“This approach undermines the privacy and security protections our users have come to expect, hampers our ability to innovate, and forces us to give away our technology for free to foreign competitors.”

The iPhone maker argues that if the UK authority opens the gates with such regulations, it would weaken security, leaving Apple users more exposed to scams, while also damaging investment in new technologies. 

It has also questioned the evidence the CMA is relying on, pointing to what it sees as limited feedback from developers.

But the regulator has objected to suggestions that it is simply copying Europe’s playbook. A CMA spokesperson said: “Driving greater competition on mobile platforms need not undermine privacy, security or intellectual property.” 

Officials argue that the UK’s approach is narrower than the EU’s Digital Markets Act, focusing on targeted areas such as wallets and wearable devices, rather than broad platform access.

Epic Games Chief Tim Sweeney described Britain’s app market as “a Soviet supermarket” and criticised regulators for moving too slowly in mandating alternatives to Apple’s App Store. 

A coalition of firms, including Spotify and Epic, continues to lobby for stronger intervention, arguing that Apple’s rules choke innovation and suppress competition.

Beyond the tech sector, with the UK’s fintech industry valued at £18 billion and its mobile gaming market worth over £2 billion, access to dominant platforms has become an economic concern. 

Globally, the issue is also political, the White House has objected to foreign attempts to rein in U.S. technology firms, with former President Trump threatening tariffs on countries that, in his words, “discriminate against American technology.”

The CMA is expected to deliver its final decision in October 2025. 

This decision is part of an agreement with Britain’s Competition and Markets Authority (CMA), which has been investigating the impact of fake reviews on consumer trust and spending.

As part of the measures, Google will implement warning alerts on the profiles of UK businesses found guilty of manipulating their ratings through fake reviews. According to the CMA, these aim to ensure transparency and security for both consumers and businesses.

The CMA’s investigation, launched in 2021, had targeted both Google and Amazon over issues that the tech giants were not doing enough to address fraudulent reviews on their platforms. While Google has now taken corrective steps, the investigation into Amazon is still on.

Online reviews have a huge influence on consumer behaviour, with an estimated £23 billion of annual UK spending potentially affected by such reviews. The CMA also revealed that 89% of consumers rely on online reviews when researching products or services.

CMA Chief Executive Sarah Cardell stated, “The changes we’ve secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices. This is a matter of fairness – for both businesses and consumers – and we encourage the entire sector to take note.”

Google, on its part, acknowledged its collaboration with regulators worldwide as part of its goal to tackle fake content. A spokesperson noted that these initiatives reiterate the company’s focus on addressing “bad actors” and maintaining the integrity of its platforms.

From April, the CMA will gain new powers, allowing it to independently determine breaches of consumer law without resorting to court proceedings. 

Regulators are currently investigating tech companies, including recent probes into Google’s search services and the monopoly of Apple and Google in mobile industries.

However, the government’s decision to appoint a former Amazon executive as chair of the CMA brings questions among competition experts, regarding the possible implications for the regulator’s stand on big tech.

This comes after Amazon recently invested $4 billion in Anthropic, a company known for developing large language models and the chatbot Claude, akin to OpenAI’s ChatGPT.

The investigation, part of the CMA’s probe of major tech companies’ investments in AI startups, seeks to determine whether this partnership could harm competition in the UK market. 

The regulator has set the initial period for its investigation to begin on August 9, 2024, with a decision deadline of October 4, 2024.

“The Competition and Markets Authority (CMA) hereby gives notice pursuant to paragraph (b) of the definition of ‘initial period’ in section 34ZA(3) of the Enterprise Act 2002 (the Act) that it has sufficient information in relation to the partnership between Amazon.com, Inc. and Anthropic PBC (the Partnership) to enable it to begin an investigation for the purposes of deciding whether to make a reference for a phase 2 investigation.

The initial period defined in section 34ZA(3) of the Act in relation to the Partnership will therefore commence on the first working day after the date of this notice, ie on 9 August 2024. The end of the initial period and the deadline for the CMA to announce its decision whether to refer the Merger for a Phase 2 investigation is therefore 4 October 2024.”

The announcement comes shortly after the CMA invited comments on Google’s financial ties with Anthropic, following Google’s investments totalling $2.3 billion over the past year. 

Founded in 2021, Anthropic has quickly raised $10 billion, becoming a public benefit corporation to differentiate from competitors.

The CMA’s investigation points to the issue some refer to as a “quasi-merger” strategy by Big Tech firms. This approach involves investments or hiring talent from innovative startups, aiming to exert control without triggering full merger regulatory investigation. 

The CMA is also preparing to examine Microsoft’s investments in OpenAI and its partnership with French startup Mistral AI, although the latter was deemed too small for a full probe.

In response to the investigation, an Anthropic spokesperson said the company is independent, noting that Amazon does not hold any board seats or observer rights. Anthropic intends to cooperate fully with the CMA to clarify the nature of its collaboration with Amazon.

The CMA now has 40 working days to decide whether the Amazon-Anthropic partnership warrants further investigation. This decision could lead to more strict antitrust measures if the regulator deems the investment could impact market competition.