The Strategic Market Status (SMS) regime gives the Competition and Markets Authority’s (CMA’s) Digital Markets Unit (DMU) power to designate firms as having SMS if they have “substantial and entrenched market power” and a “position of strategic significance” in relation to digital activities linked to the UK. SMS status will likely be given to Apple along with other major tech firms, including Google, Samsung, Microsoft, who all have market power and strategic significance. 

While this could be seen as a badge of honor, it also means the companies will have to follow a code of conduct created by the DMU. “The scope of permitted conduct requirements is incredibly broad, giving the DMU very wide discretion to decide what obligations should be imposed on each firm,” writes Linklaters.

They may also be given more stringent merger reporting requirements and could be subject to what are called Pro-Competitive Interventions (PCI’s).