The UK’s new digital markets regime has moved from theory to practice, and your phone is right in the crosshairs. In late October, the Competition and Markets Authority (CMA) formally designated Apple and Google with “Strategic Market Status” (SMS) for their mobile platforms. That unlocks bespoke rules for app stores, browsers and payments designed to spur competition and improve user choice, while keeping innovation on track. If you run a small business that sells through apps, or you simply want more control over your device, the next year will matter.
What just changed: SMS under the DMCC, in brief
The Digital Markets, Competition and Consumers Act 2024 (DMCC) took effect for digital markets in January 2025, creating a UK-specific regime that applies only to the very largest firms. The CMA can designate a company with SMS in a defined “digital activity” if it has substantial and entrenched market power and a position of strategic significance. Thresholds include either more than £1 billion UK turnover or £25 billion global turnover, with investigations capped at nine months and designations reviewed every five years.
In October 2025, the CMA confirmed Apple and Google met the legal tests for SMS across their mobile platforms, covering operating systems, app distribution, browsers and browser engines. Notably, the regulator pointed to entrenched market power that is unlikely to fade over the five-year designation period. This is not a finding of wrongdoing, but it gives the CMA authority to impose tailored “conduct requirements” and deeper “pro-competition interventions.”
Two figures show why this matters for the wider economy. The CMA estimates the UK app economy represents roughly 1.5% of GDP and supports about 400,000 jobs. And Google still accounts for more than 90% of general search in the UK, which is a powerful traffic gatekeeper for app discovery and monetisation.
App stores: from opaque rules to clearer choices
The CMA’s roadmap targets practical frictions app makers face. Expect proposals on fair and transparent app review processes, clearer ranking criteria, and an end to restrictions that stop developers directing users to pay on the web rather than inside the app. Commissions on in-app purchases have historically reached up to 30%, so even modest shifts in “steering” could change pricing logic for subscriptions and in-app upgrades.
In plain terms, here are likely themes for change:
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Fair app reviews and ranking to reduce arbitrary delays or unexplained rejections.
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Steering to the web so developers can present off-store payment options more freely.
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Transparency on fees and terms around commissions, trials and subscriptions.
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Scope for alternative distribution on platforms that restrict sideloading or rival stores today.
For users, this could mean more visible price competition and fewer dead ends when you try to subscribe outside an app. For SMEs, it could mean better conversion once you can explain payment options without tripping policy tripwires.
Browsers and web apps: engines, defaults and choice
Browsers are not just about surfing the web; they are how many modern apps run as progressive web apps (PWAs). The CMA’s browser investigation found UK mobile browser markets are not working well, pointing in particular to engine restrictions and defaults that entrench incumbents. On Apple’s devices, Safari holds 80–90% share; on Android, Chrome has 70–80%. The regulator has signalled interest in opening up browser engines on iOS and strengthening genuine user choice over defaults.
Why this matters day-to-day:
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Performance and features: Allowing third-party engines on iOS could improve speed, battery use and web capabilities that PWAs can access.
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Competition on quality: If engines can compete, small browser makers can differentiate on privacy or developer tools, not just skins.
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Less lock-in via defaults: Choice prompts and easier switching lower the “set-and-forget” bias that keeps defaults in place.
For designers and developers, a more open browser layer could reduce duplicated native builds and speed up web-first product launches.
Payments and digital wallets: beyond a single tap
The CMA’s mobile platforms roadmap also flags interoperability for fintechs. That includes enabling digital wallets to access device functionality they need to compete, which could touch how near-field communication works at the point of sale. Practical changes may range from fairer access requests to clearer rules on how apps can present and process payments, with enforcement teeth if firms ignore obligations. Under the DMCC, breaches of conduct requirements or pro-competition remedies can trigger fines of up to 10% of global turnover, and persistent non-compliance can carry daily penalties. For consumer law breaches, the CMA can also directly fine up to 10% of global turnover.
For SMEs that sell subscriptions or take in-app payments, a more permissive “steering” regime plus wallet interoperability could lower transaction costs and reduce the need to build multiple in-app flows to satisfy platform rules. The net result should be clearer pricing and fewer abandoned checkouts.
What you may notice soon: everyday scenarios
Imagine you install a privacy-focused web browser on your phone and find it genuinely keeps pace with the default option. If third-party engines can run with fewer constraints and choice prompts are clearer, you could experience faster page loads, more capable web apps, and fewer nag screens urging you back to the default. That is the point of SMS powers: to turn theoretical choice into real utility.
If you pay for creative tools monthly, the checkout may look different. Developers could explain web payment options more openly, compare total costs, or offer trials without re-architecting their apps around rigid store rules. That does not guarantee prices will drop, but it gives businesses more levers to experiment with bundles, loyalty and clearer billing. And if you edit images on mobile and sometimes need to combine photos, you may start to see promotions or bundles offered on the developer’s website rather than only inside the app, reflecting new “steering” freedoms under consultation.
Music, gaming and fitness apps are likely to test these changes early. Expect clearer upgrade paths, fewer pop-ups warning you off web payments, and more dynamic pricing trials. For households, the practical win is transparency. For small studios, it is the ability to run controlled experiments without tripping platform policy. If your workflow spans web and native, for instance when you upload media and later combine photos in a desktop browser session, you may see smoother hand-offs between mobile app and web account as developers rationalise their flows.
What SMEs should do now
You do not need to wait for every remedy to land before preparing. Three pragmatic steps can put you ahead of the curve:
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Map your dependencies. List where platform rules constrain pricing, onboarding, search visibility or browser features. Rank the pain points.
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Design a steering-compliant checkout. Build and test a clean web payment path that can be switched on if and when rules permit wider steering. Keep disclosures plain and fair.
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Web-first performance. If iOS engines open up, a well-tuned PWA can shorten your time to market. Measure core web vitals now to benchmark gains.
Review your app portfolio for opportunities where store commissions make freemium or micro-subscriptions marginal. If you provide media utilities and your users frequently combine photos as part of a paid workflow, a clearer off-store path could let you test bundles that were previously uneconomic at a 30% cut. Keep pricing experiments narrow and time-boxed so you can roll back quickly if conversion dips.
What to watch next: timing, scope and enforcement
The CMA’s designation decisions unlock consultations on the first wave of interventions. The regulator stresses proportionality and pace, with investigations time-boxed at nine months and remedies tailored to specific harms. Because mobile platforms are gateways for so many UK businesses, early actions centre on app distribution, browser choice and payment steering. Keep in mind that SMS designations last up to five years, after which the CMA reassesses. That gives a runway for iterative fixes rather than one-off edicts.
There is also a wider enforcement backdrop. The CMA now has direct consumer-law powers, including fines up to 10% of global turnover for serious infringements such as misleading subscription practices. Combined with DMCC digital-market tools, this creates both carrot and stick: the scope to craft practical, UK-specific solutions, plus meaningful penalties if firms ignore obligations.
Conclusion
For users, the promise is real choice: better browsers, clearer prices, and payment options that make sense. For SMEs, the headline is leverage: more room to experiment with distribution and checkout, and a fairer shot at ranking and reviews. None of this guarantees lower prices or instant friction-free apps, but the UK now has a framework that can target specific bottlenecks with enforceable rules. Watch the CMA’s consultations and roadmaps, design steered checkouts you can activate quickly, and invest in web performance so you benefit if the browser layer truly opens up.
FAQ
When do users start seeing changes?
Designation is done. Specific remedies require consultation and then implementation. Expect the first wave to surface over the next year as the CMA prioritises app distribution, browser choice and payments.
Can Apple and Google appeal?
SMS is not a finding of illegality; it enables tailored rules. Firms can engage during consultations and challenge enforcement decisions in the courts, but the regime is designed to move at pace with nine-month investigation windows.
Will commissions fall?
The CMA has highlighted historic in-app fees of up to 30% and is focusing on letting developers steer users to the web. That may not cut listed rates, but it can increase price competition and create viable alternatives for some models.
Could browsers on iPhone really change?
Yes. The CMA has found mobile browser markets are not working well and is exploring engine openness and default choice. That could make non-default browsers faster and more capable.
What are the penalties if rules are ignored?
For breaches of conduct requirements or remedies in the digital regime, fines can reach up to 10% of global turnover, with daily penalties for ongoing non-compliance. For consumer-law breaches, the CMA can also directly fine up to 10% of global turnover.
