IN COMPETITION… COMPETITION & PUBLIC PROCUREMENT LAW: AUGUST 2025 UPDATE
September 2025Welcome to the second of our regular updates on developments in the field of antitrust and government contracting. We have included those which we think will be of most interest and relevance to readers.
Antitrust highlights
23 July 2025 – SMS designations proposed for Apple and Google (mobile ecosystems)
- The CMA has proposed giving Strategic Market Status (SMS) to Apple and Google for their dominance in mobile ecosystems-particularly mobile browsers and app stores. This follows concerns over limited consumer and business choice, skewed app-store rankings, and high in-app purchase fees (up to 30%). The CMA has published separate roadmaps outlining potential regulatory measures, such as fairer app review processes, transparent rankings, and allowing developers to steer users to external payment options. Final decisions expected by 22 October 2025.
CMA proposes next steps for improving mobile platforms in the UK – Competition and Markets Authority
31 July 2025 – Cloud infrastructure services: SMS tools targeted
- The CMA’s final report in its cloud services market investigation found competition to be “not working well”, recommending potential use of Digital Markets powers, including SMS designation, in 2026. The panel criticised Microsoft’s licensing terms as distorting competition in cloud services. Microsoft and Amazon remain dominant (both holding up to ~40%) while Google lags behind. It is understood that the CMA may impose conduct requirements on these providers in 2026, subject to further designation investigations.
Cloud services market investigation – GOV.UK
28 August 2025 – Apple respond to CMA’s regulation proposals
- Apple publicly criticised the CMA’s mobile-regulation proposals, warning they could undermine privacy, reduce innovation and expose users to scams, and questioned the evidence base behind the designated interventions.
Apple warns UK against introducing tougher tech regulation – BBC News
Public Procurement Law
23 June 2025 – Data from first three months of the new regime shows improvement
- The Open Contracting Partnership noted that early data post-Procurement Act shows significant enhancement in transparency and efficiency in public procurement flows – a promising trend for governance and accountability.
31 July – Government consultation on late payment and procurement
- S 73 of the Procurement Act 2023 includes a new obligation for government contractors to pay their supply chain members within 30 days. The Government has opened a consultation on plans to incentivise suppliers to keep to this timeframe. Proposals include requiring public bodies to exclude suppliers from tenders if they are non-compliant. They also propose making statutory interest rates under The Late Payment of Commercial Debts (Interest) Act 1998 mandatory.
Read our article on this development here: Proposed government crackdown on late payments and stricter payment targets for SMEs and VCSEs | Beale & Co
27 August 2025 – AI Procurement grows 22% YoY
- According to Tussell’s AI Procurement Tracker, the UK government has awarded £573 million in AI-related public sector contracts so far in 2025, surpassing the £468 million awarded in the whole of 2024. The contracts cover generative AI, predictive analytics, automation, and image recognition, with major awards to Microsoft, Palantir, Kainos, HPE, UiPath, and the LGC Group (which secured a £234m deal for a national measurement system). This surge supports the government’s broader plan to boost efficiency and deliver up to £45 billion in annual savings.
UK Public Sector AI Procurement Tracker
27 August 2025 – Offshore wind procurement reboot: longer contracts and higher bid caps introduced
- The UK government reformed its Contracts for Difference (CfD) scheme to boost offshore wind development toward its 2030 clean energy targets. Reforms include extending CfD terms from 15 to 20 years, raising maximum bid prices to reflect rising costs, and introducing a £544 million Clean Industry Bonus for supply-chain investment.
UK subsidy shift could put offshore wind back on track | Reuters
31 August 2025 – Norway signs for £10 billion of maritime security
- Norway has signed a £10 billion deal to purchase at least five British-designed Type 26 anti-submarine frigates, marking the largest warship export in UK history and Norway’s biggest-ever defence procurement. The frigates will be constructed by BAE Systems in Glasgow, sustaining approximately 4,000 UK jobs and supporting over 400 businesses, including more than 200 SMEs. A combined Anglo-Norwegian fleet of 13 frigates, eight for the Royal Navy and at least five for the Royal Norwegian Navy, will jointly patrol Northern European waters to strengthen NATO’s northern flank.
Boost for UK Growth and Security as Norway Selects UK Warships in £10 billion partnership – GOV.UK
How we can help
Our expert teams are closely monitoring the evolving competition and procurement landscapes. If you’d like to discuss how the latest developments may affect your organisation – or require support responding to regulatory consultations – please get in touch with the authors. In the meantime, stay tuned for our next update.
Paul Henty – p.henty@beale-law.com – +44 (0) 20 7469 0499
Deen Taj – d.taj@beale-law.com – +44 (0) 20 7469 0414
Charlie Bayliss – c.bayliss@beale-law.com – +44 (0) 20 3053 3082
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