UK CMA Proposes Overhaul of Apple, Google Mobile Duopoly

The UK Competition and Markets Authority (CMA) is moving to impose significant regulatory changes on Apple and Google, designating them with "strategic market status" due to their effective duopoly over the UK's mobile ecosystem, where 90-100% of devices run on their platforms. This status would empower the CMA to mandate measures such as reducing in-app transaction fees, allowing developers to direct users to external payment systems, enhancing interoperability with third-party services, and ensuring fair treatment of rival apps. The CMA aims to boost competition, foster innovation, and increase consumer choice by addressing issues like opaque app review processes, the dominance of pre-installed apps, and restrictions on digital wallets and AI services like voice assistants. Both companies have opposed the proposals, raising concerns about potential impacts on user privacy, security, and innovation, with Apple worried about forced technology sharing and Google highlighting Android's open-source advantages. The CMA's final decision is expected in October, potentially aligning UK regulations with similar efforts in the US and EU to curtail the market power of major tech firms. Meanwhile, Apple also faces pressure in the US as the Department of Justice seeks to block Google's $20 billion payments to remain Safari's default search engine, threatening a key revenue source amid Apple's push to expand its AI and search capabilities.