UK Regulator Secures App Store Commitments From Apple and Google

This article first appeared on GuruFocus.

Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) have offered voluntary commitments to the UK’s Competition and Markets Authority that could reshape how their app stores operate, marking the first set of assurances secured under the country’s new digital markets regime. The CMA said the proposals focus on app store data collection, app ranking practices, and interoperability, with the regulator now seeking feedback from market participants. The watchdog framed the commitments as a step toward improving outcomes for both developers and consumers, as it assesses whether the measures adequately address competition concerns.

The CMA said the proposed changes could give app developers fairer terms and possibly allow businesses to compete more effectively with Apple’s digital wallet. Both companies were previously found to hold a duopoly in mobile platforms and were designated as having Strategic Market Status, a classification that places behavioral guardrails on firms deemed to have outsized market power. Under these rules, the regulator can require changes such as making it easier for users to download apps or pay for content outside Apple’s and Google’s own platforms, with enforcement actions and fines remaining available if competition issues are not resolved.

The commitments are due to be implemented from April following the CMA’s market review, which highlighted the scale of the sector, noting that the UK app economy accounts for an estimated 1.5% of GDP and that Apple’s and Google’s platforms run on almost all mobile devices. Apple said the commitments would allow it to continue advancing privacy and security innovations while supporting developer opportunities, while Google said its app store practices are fair, objective and transparent and that the commitments should resolve the CMA’s concerns through collaboration. For investors, the developments could signal a more structured regulatory environment in the UK, with compliance-driven adjustments potentially influencing competitive dynamics across mobile ecosystems.