If you live in the UK, your smartphone has quietly become your main interface with banks, retailers, entertainment and public services. Recent estimates suggest around 94 per cent of UK adults own a smartphone, rising to almost 100 per cent among 16 to 24 year olds.
The Digital Markets, Competition and Consumers Act (DMCC), which received Royal Assent in May 2024, is designed with exactly that reality in mind. From January 2025 it began giving the Competition and Markets Authority (CMA) new powers over the largest digital platforms, through a bespoke regime for firms with Strategic Market Status, or SMS. In autumn 2025, Apple and Google were formally confirmed as SMS firms for key parts of their mobile ecosystems, opening the door to binding conduct rules that are expected to start reshaping user experience from 2026 onwards.
What is the UK’s new SMS regime, in plain terms?
Strategic Market Status is a legal label for firms that have very large turnover, substantial and entrenched market power, and a position of strategic significance in a particular digital activity. That might be operating systems, app stores, mobile browsers or search. An SMS investigation typically runs on a nine month timetable, and any designation must be reviewed at least every five years so that the rulebook keeps up with technological change.
Key point
SMS is not just a political slogan about big tech. It is a tightly defined legal status that lets the CMA apply stronger, more tailored rules to specific gateways such as app stores or browsers.
Once a firm is designated, the CMA gains two main tools. Conduct requirements are binding behavioural rules that tell SMS firms what they must or must not do in a named activity, for example by banning certain self preferencing or by mandating better transparency. Pro competition interventions go further, allowing the regulator to tackle structural problems, require interoperability or allow easier switching between providers.
The context for mobile is stark. Android and iOS together account for virtually all UK smartphones, with recent figures showing a roughly even split between the two platforms.
- The SMS regime targets only a few very large firms, rather than the whole tech sector.
- Rules can be written with specific outcomes in mind, such as fair dealing or open choices.
- Breaches can lead to substantial fines and daily penalties, giving the rules real teeth.
What will change in app stores and in app payments?
The most immediate changes are likely to come in app stores and in app payments, where developers have long argued that Apple and Google act as gatekeepers. Concerns include high commissions on digital purchases, inconsistent review processes and restrictions that stop apps from telling users about cheaper deals on the web. The CMA has already signalled that conduct requirements will focus on outcomes like fairer terms, more open choices and better transparency around how these stores operate.
Key point
For app stores, SMS turns years of developer complaints into a rulebook the CMA can enforce, rather than a series of one off investigations and informal nudges.
For users, the most visible shift will be around how and where you can pay. Rules on so called anti steering are expected to stop platforms from banning apps that signpost cheaper options on the developer’s site or via email. Payment choice is also in scope, which could mean more room for alternative payment providers in some categories of digital goods and subscriptions. In practice, you might tap to buy a new set of filters or extra storage and see a clear message that the same product is available directly from the developer, possibly at a lower price if the platform is not taking a commission.
These changes matter for everyday apps rather than for obscure technical tools. If you subscribe to a photo editor or a fitness service today, most communication around pricing and renewal is channelled through the app store itself. Under a stricter SMS regime, it should become normal for developers to explain their own pricing more clearly and to invite you to manage your subscription with them directly, as long as they handle data and security responsibly.
How will browsers, search and defaults feel different?
The second major front is browsers, search, and default settings. On Apple devices in particular, long standing rules have required all browsers to use the WebKit engine, which campaigners argue limits performance and constrains the development of richer web apps. The CMA’s guidance for the digital markets competition regime flags “open choices” as a central outcome, including in relation to browsers and search engines.
Key point
Browser and search rules are really about keeping the open web viable, so that powerful services do not have to live only inside tightly controlled app ecosystems.
In practical terms, users may see more prominent choice screens during device setup or after major updates, inviting them to pick a default browser and search engine instead of quietly accepting the pre installed option. And web apps may be allowed to hook more deeply into the operating system, with better notifications or offline support that make them feel closer to native apps.
If those shifts happen, the boundary between native and web services will blur. A complex design tool or photo editor that currently feels realistic only as a native app might become smooth enough in the browser that you barely notice which layer you are using. For people on older or cheaper hardware, that matters, because a good browser and a reliable connection would be enough to access advanced tools without installing multiple heavyweight apps.
What does all this mean for UK users and developers?
The most important effect for users is not a single new feature; it is a gradual shift in bargaining power. Mobile platforms currently sit between almost every business and its customers, which campaigners describe as a growing “tyranny of apps” for people who struggle with smartphones or cannot afford them. By tightening rules on fair dealing, transparency, and open choices, the SMS regime aims to give both consumers and smaller businesses more leverage.
Key point
If the regime works, you should feel a bit less locked in: more able to compare offers, change defaults, and manage subscriptions on your own terms.
In everyday use, that should show up in two places. Prices and subscription structures may become more flexible as developers gain freedom to route some customers away from high commission channels. People who only go online via a smartphone, a group that includes nearly one in five UK internet users, should also find it easier to compare deals or switch providers directly from their device.
- A bit more price competition, especially on digital subscriptions and one off in app purchases.
- Slightly more trustworthy recommendations in stores and search results, with less hidden bias.
- Better experiences for smartphone only users, who can compare and switch without a laptop.
For developers, especially smaller UK based teams, the picture is more mixed. New rights to communicate directly with customers, to use alternative payment rails or to demand better access to platform features are attractive. A small studio building a niche productivity tool or photo editor could, for example, offer a lower price to loyal users who buy direct, without risking ejection from the main app store. Against that, complying with new conduct requirements, documenting data practices and dealing with different rules across platforms will create fresh overhead.
In summary
The UK’s first wave of Strategic Market Status rulings is more than a symbolic slap on the wrist for big tech. It marks the start of a new, more hands on regulatory era for the mobile ecosystems that now structure daily life. From 2026 onwards, the biggest differences on your phone are likely to be subtle but important: more choice prompts, clearer payment options, slightly less friction for alternative services, and a bit more leverage for smaller developers.
For users, the most useful response is to treat those prompts seriously instead of swiping them away by habit. When a choice screen appears, it is worth pausing to decide which browser, search engine or payment route you actually want.
FAQ
When will I actually see changes on my phone?
Most visible changes are expected to roll out from 2026, as conduct requirements for SMS firms are consulted on, finalised, and implemented. Some shifts, like new choice screens, are likely to arrive gradually through software updates.
Does SMS status mean Apple or Google has broken the law?
No. SMS is not a finding of past misconduct. It recognises that a firm has entrenched market power and strategic significance in a digital activity, which justifies stronger forward looking rules to prevent harm.
Will app prices definitely fall once the new rules apply?
There is no guarantee of universal price cuts. The aim is to lower barriers so that developers can experiment more freely with pricing and payment models. In some cases that may mean lower prices or better terms; in others, competition may show up through quality and innovation.
Could this make my phone less secure or more confusing to use?
More openness and choice can introduce complexity and new security risks. The CMA says it will design conduct requirements that are proportionate and mindful of security, but there will always be a balance to strike between control and flexibility.