In a significant move to enhance competition within the UK’s digital marketplace, Apple and Google have agreed to implement changes to their app stores after a directive from the Competition and Markets Authority (CMA). This agreement arrives seven months after the CMA highlighted the tech giants’ dominance in the sector, labelling it an “effective duopoly.” The commitments made by the companies aim to foster a more equitable environment for app developers and consumers alike.
Key Commitments from Tech Giants
In a bid to address concerns raised by the CMA, Apple and Google have pledged not to show preferential treatment towards their own applications within their respective app stores. Additionally, they will increase transparency regarding the approval processes for third-party apps. CMA Chief Executive Sarah Cardell expressed optimism about these commitments, stating they would “boost the UK’s app economy” and serve as a foundation for future regulatory measures.
The CMA classified both Apple and Google’s app stores as having “strategic market status” in October 2025. This designation grants the CMA the authority to enforce changes aimed at promoting greater competition and user choice.
As part of the recent agreement, the tech firms also committed to not unfairly utilise data collected from third-party developers. Cardell described these steps as “important first steps” and indicated that the CMA would continue to work on further measures with both companies.
Regulatory Oversight and Future Monitoring
The CMA has stated that it will closely monitor the implementation of these changes. Should the companies fail to adhere to their commitments, the regulator is prepared to take formal action. The importance of these adjustments cannot be understated, as they represent a critical shift in how app stores operate in the UK.
Both Apple and Google have welcomed the agreement. An Apple spokesperson remarked, “Apple faces fierce competition in every market where we operate, and we work tirelessly to create the best products, services, and user experience.” Similarly, Google acknowledged the collaborative approach to resolving the CMA’s concerns, despite maintaining that its existing app store practices are fair and transparent.
The Bigger Picture: EU Comparisons and Economic Impact
The CMA has highlighted that the UK boasts the largest app economy in Europe, contributing an estimated 1.5% to the nation’s GDP and supporting around 400,000 jobs. However, both Apple and Google have cautioned against adopting stringent regulations akin to those enforced by the European Union, which they argue may stifle innovation.
Under the EU’s regulations aimed at ensuring fair competition, major online platforms identified as “gatekeepers” face more stringent requirements. For example, Apple has been compelled to enhance transparency and allow users to access alternative browsers beyond its default option, Safari. The company has voiced concerns that such regulations could compromise the privacy and security of its products.
Apple asserts that the recent commitments illustrate its willingness to engage constructively with the CMA and adopt a pragmatic approach to regulation.
Why it Matters
This agreement marks a pivotal moment for the app economy in the UK, potentially reshaping the landscape for developers and consumers. By fostering a more competitive environment, these changes could lead to increased innovation and better services for users. The outcome of this regulatory intervention will be closely watched, serving as a precedent for how digital markets may evolve in response to regulatory scrutiny. As the digital economy continues to grow, ensuring fair competition will be crucial in maintaining a vibrant and diverse ecosystem.
