SMS designation of Apple and Google risks undermining innovation and consumer choice

On Wednesday the Competition and Markets Authority (CMA) designated both Apple and Google as holding Strategic Market Status (SMS), claiming that both companies occupy extremely influential positions in the mobile and digital ecosystems.

While the Consumer Choice Center (CCC) acknowledges the CMA’s objective of ensuring fair competition, this move carries unintended consequences for consumers and the technology sector.

Mike Salem, UK Country Associate for the CCC, highlighted key concerns in a statement, “This designation should not punish success. Millions of users choose Apple and Google because they want the experience they deliver, not because they’re trapped. We must ensure regulation safeguards what works, rather than dismantles it.”

• Successful competition is not the same as unfair dominance. Consumers choose Apple and Google products because of their quality, integration, and user experience, not because they have no alternative
• Designating firms with SMS grants the regulator broad powers to impose new rules, often without clear evidence of harm being established. This raises the risk that innovation, user experiences, and tech ecosystem stability could be compromised.

“What the UK is seeing at play is “network-effects”, where a product becomes more valuable as more people use it. It’s a core feature of modern digital markets ranging from laptops and phones to home security and appliance management. Apple’s device-ecosystem and Google’s search scale reflect competitive strength, not automatic misconduct. Oversight should be smart, evidence-based and preserve what people value,” concluded Salem.

The CCC urges regulators to carefully consider their next steps, as interventions risk denying consumers many of the new technological features, such as the EU DMA act and its consequence of delaying Live Translation feature on Apple Airpods. UK users should not be left behind.