UK app developers now three times the size of the farming industry
Key Points
- App development is roughly 1.5% of UK GDP, three times the size of agriculture, the CMA chair said
- Doug Gurr said most growing developers rely on app stores, making fair terms critical
- He listed three strategic market status designations and changes to Apple and Google's mobile ecosystems
- The CMA has also secured cloud commitments from Amazon and Microsoft and opened a Microsoft software probe
App development accounts for roughly 1.5% of UK GDP, three times the size of the entire agricultural industry, Competition and Markets Authority Chair Doug Gurr said on Wednesday (16 September).
Gurr gave the figure in a keynote speech at the International Chambers of Commerce UK Competition Conference in London, hosted by law firm Clifford Chance.
He said he had spoken to many app developers over the past year and that people sometimes forget how many innovative businesses are emerging in the sector.
Gurr pointed to a group of developers in Brighton who built a service that connects cyclists with shops able to repair their specific bike model.
“That may not seem revolutionary to you, but to keen cyclists like me, it’s a godsend,” said Gurr, chair of the Competition and Markets Authority.
He said growing firms of this kind almost always distribute their products through an app store, which makes fair dealing and fair terms critical to their survival.
“If you don’t – if your app is arbitrarily blocked, or your fees too high – that can destroy your business,” Gurr said.
The CMA chair listed the steps the regulator has taken under its digital markets regime to support businesses in this position, including:
- Three strategic market status designations
- Changes to Google and Apple’s mobile ecosystems
- A requirement on Google Search allowing publishers to opt out of their content being used to power AI features and train AI models, which Gurr described as a world first
- Voluntary agreements from Amazon and Microsoft to improve interoperability and multi-cloud in cloud computing
- An investigation into Microsoft’s business software ecosystem
Gurr said the regulator had imposed conduct requirements where warranted but had also secured commitments from firms where that route delivered outcomes faster than a formal legal process.
He said the interventions were opening up opportunities for thousands of fast-growing UK businesses, giving them greater choice and fairer access to customers in markets long controlled by a small number of global firms.
Gurr also said the UK government spends around £400 billion a year buying goods and services from the private sector, and that the CMA wants procurement rules reviewed to lower barriers for British SMEs and scale-ups.
He said every requirement placed on bidders should pass a single test of whether the benefit justifies the burden, arguing these burdens can decide whether a startup stays small or scales up.
