Google has issued a response to the UK"s Competition and Markets Authority"s (CMA) designation of its "Mobile Platform", which includes Android, the Play Store, Chrome, and the Blink engine, with Strategic Market Status (SMS) earlier today.
For context, a Strategic Market Status (SMS) is a formal designation under the Competition and Consumers Act 2024. The new law, effective from January 1, 2025, gives the regulator expanded powers with the goal to ensure fair treatment for consumers and businesses. The UK government pitched the new regime as a way to "unlock opportunities for more innovation and economic growth across the UK tech sector."
The CMA said it came to its decision after consulting with over 150 stakeholders and concluded that both Google and Apple hold "substantial, entrenched market power and a position of strategic significance" in their respective mobile ecosystems. The authority believes this dominance will persist, even with the emergence of AI.
Google defended itself by stating that Android and Chrome were designed for "creating more choice, not less". The company emphasized that anyone can customize the open-source Android operating system for free, and it allows users to download apps from competing stores or directly from a developer"s website, an option that other mobile platforms restrict.
The Mountain View giant also noted that more than two-thirds of UK Android devices come with a non-Play app store preloaded, and that non-Chrome browsers are installed on 70% of UK Android devices.
Being designated with SMS is "not a finding of wrongdoing", according to the CMA, but it allows the regulator to introduce targeted rules to ensure the market is competitive.
In other CMA news, the regulator recently stepped in to scrutinize the merger between Getty and Shutterstock, two of the most popular stock media services. The CMA found the deal posed a major risk to competition in the supply of editorial content, not just in the UK, but around the world.