Google and Apple are the first companies facing an investigation for potential Strategic Market Status under the new U.K. Digital Markets, Competition and Consumers Act (DMCCA). If designated, these tech giants will have to follow specific conduct rules aimed at preventing anti-competitive behavior.
On January 23, the Competition and Markets Authority (CMA) announced its evaluation of Google and Apple’s mobile ecosystems. This includes their operating systems, app stores, and default browsers to determine if they hold too much power in the market. The CMA emphasized, “Mobile ecosystems are crucial for people, businesses, and the economy, so promoting effective competition is vital.”
Just days earlier, the CMA had launched a separate investigation into Google, focusing on its search and advertising services where advertisers pay to have their ads shown alongside search results.
What’s the DMCCA? It came into effect on January 1 to oversee the practices of major digital firms with significant market weight in the U.K. The act empowers the CMA to impose obligations on companies deemed to have Strategic Market Status, similar to the “gatekeeper” role defined in the E.U.’s Digital Markets Act.
During these mobile ecosystem investigations, the CMA will evaluate whether Apple and Google allow competitors to offer alternative products. They will also look into whether the companies promote their own apps within the iOS and Android systems, and whether developers face unfair terms when distributing apps on these platforms.
In the case of Google’s search and advertising influence, the CMA will check if Google is stifling innovation by withholding resources or creating AI features that limit what competing search engines can do. They’ll also assess if Google prioritizes its own services in search results, collects consumer data without consent, or uses publisher content under unfair terms.
The DMCCA allows for the formation of a Digital Markets Unit within the CMA, which will draft tailored conduct requirements for each firm that achieves Strategic Market Status. These requirements will be enforced to prevent anti-competitive practices before they even happen. For instance, in the mobile ecosystem, these rules might require Google and Apple to improve third-party app functionality on their platforms or make it easier for users to download apps outside of the official app stores.
The CMA will determine conduct requirements for Google regarding search services, which might include mandating data sharing with competitors or giving publishers more control over their data.
Companies can qualify for Strategic Market Status if they have significant digital influence, strategic importance, and if they make over £25 billion globally or over £1 billion in the U.K. The CMA’s investigation into each firm typically lasts around nine months.
These current investigations into mobile ecosystems and search advertising are the first of their kind under the DMCCA, with decisions expected by the end of October.
Meanwhile, Google is facing scrutiny outside the U.K. as well. In March 2024, Google made temporary changes to Search functions to comply with the E.U.’s Digital Markets Act. But shortly after, European regulators launched a non-compliance investigation, arguing that Google still promotes its services over third-party offerings. In December 2024, Google announced more modifications to its search features in response to the E.U. regulations.
In a legal battle, the European Court of Justice upheld a €2.42 billion fine against Google for favoritism related to its shopping service. In the U.S., a judge found that Google monopolizes search services, violating antitrust laws.
Despite the setbacks, Google continues to fight these measures. It recently overturned a €1.5 billion fine related to its AdSense practices and is appealing a €4.34 billion anti-competitive fine for its search service integration on Android devices.
