Google has criticised the UK competition watchdog’s decision to give its mobile platform “strategic market status” under sweeping new digital regulation.
The Big Tech giant dubbed the move “disproportionate”, arguing that it risks undermining innovation.
The Competition and Markets Authority (CMA) confirmed on Wednesday that Google’s mobile services, including Android, the Play Store, Chrome and the Blink browser engine, have been designated with strategic market status (SMS) under the Digital Markets, Competition and Consumers Act.
The designation allows the CMA to impose new rules on how the tech giant operates its mobile ecosystem in the UK, including potential requirements on app store access or data sharing.
It follows a similar ruling last week on Google’s search and advertising services, marking the first use of the UK’s new ex-ante digital competition powers.
Responding to the latest decision, Oliver Bethell, senior competition director at Google, said: “This decision is disappointing, disproportionate and unwarranted. The UK’s new digital markets regime was introduced with the promise of being pro-growth and pro-innovation. In this context, we simply do not see the rationale for today’s designation decision”.
Bethell also argued that Android and Chrome were designed to “create more choice, not less”, noting that anyone – including competitors – can use or adapt the open-source Android operating system for free.
“While Google Play helps people download apps, users can also install them from rival stores or directly from a developer’s website – something most Android users actually do, and something other mobile platforms restrict”, he said.
The search giant also pointed to figures showing that Android supports over £9.9bn in revenue for UK developers and 457,000 jobs, with 91 per cent of UK users reporting satisfaction with their devices.
The company warned that the CMA’s next steps will be “crucial” to ensuring the new regime delivers on its pro-growth aims rather than stifling innovation.
CMA promotes fairer competition
The CMA said the decision reflects Google’s established position in the mobile market, where its software has long underpinned the majority of smartphones worldwide.
“By promoting competition in digital markets like search and mobile platforms, we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy”, said Will Hayter, executive director for digital markets at the CMA.
The regulator will now consult on specific conduct requirements for Google’s mobile platform, similar to those planned for its search operations. Its proposals are expected before the end of the year.
The decision comes as part of the UK’s broader effort to rein in the market power of major tech firms through the Digital Markets Act, after years of criticism that regulators acted too slowly to curb anti-competitive behaviour.
Google has previously warned that overly prescriptive and tight regulation could slow product roll-outs and harm smaller UK companies that rely on its tools.