The UK’s competition watchdog has proposed new rules to restrict Apple and Google’s dominance in mobile technology, targeting their operating systems, app stores, and web browsers.
The Competition and Markets Authority (CMA) announced Wednesday it plans to give both companies “Strategic Market Status,” which would subject them to stricter regulations designed to increase competition and consumer choice in mobile services.
“Apple and Google’s mobile platforms are both critical to the UK economy – playing an important role in all our lives, from banking and shopping to entertainment and education,” said Sarah Cardell, the CMA’s chief executive. “But our investigation so far has identified opportunities for more innovation and choice.”
The proposed rules could eventually require the tech giants to make it easier for users to download apps and pay for content outside of Apple and Google’s own platforms. The watchdog also has powers to impose significant fines and strict remedies to boost competition.
This marks the latest regulatory challenge for major US tech companies from UK authorities. Last week, Amazon and Microsoft were asked to make changes to their cloud services businesses, while Google’s online search and advertising operations face a deepening investigation that began a month ago.
The CMA’s digital market rules, which came into effect this year, give the authority broad powers to regulate companies deemed to have strategic market status. These powers include imposing conduct requirements and implementing measures to break up potential market bottlenecks.
Apple and Google’s mobile platforms currently dominate the UK market almost completely, with their iOS and Android operating systems controlling the vast majority of smartphone usage.
The CMA will hold consultations with stakeholders before making a final decision on the designation, which is expected by October 22.
