UK-based Tech Companies

Peter Fortune Excerpts

Wednesday 11th March 2026 Westminster Hall

[Peter Fortune (Bromley and Biggin Hill) (Con)]

I beg to move,

That this House has considered Government support for UK-based tech companies.

It is a pleasure to serve under your chairmanship, Mr Betts. I am pleased to have secured this debate.

It is hard to measure the true economic value of the technology sector in the UK, but I think we can all agree on the sector’s huge importance for economic growth, productivity and society as a whole. That importance will only grow in the future, so nurturing and supporting our domestic technology sector is vital. To be clear, as a Conservative, I believe in the importance of competition as a driver for innovation and economic growth. To have true competition, we need to challenge monopolies. If our tech sector is to thrive in the future, competition is vital; otherwise, we will see innovative firms leave the UK.

Today I will focus particularly on our domestic app ecosystem. The UK’s mobile app ecosystem generates £28 billion annually in gross value added—equivalent to nearly 1% of GDP. It also supports around 400,000 jobs: the highest number in any country in Europe. However, despite that huge contribution to our economy, app developers face significant challenges.

Apple and Google control 95% of all mobile operating systems in the UK, and the Competition and Markets Authority formally designated them with strategic market status in October 2025. That does not mean that Apple and Google just run the app stores; they have control over far more than that. Those companies can control what developers can say within apps, block developer communications with consumers, hide customer details from developers and prevent them from telling users when something is new, better or cheaper—all the while taking up to 30% of every transaction. That not only stifles the sector domestically, but pushes up prices for ordinary consumers and drives British innovation overseas. We simply cannot afford to allow such a growing industry to be lost.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I congratulate the hon. Member on securing this important debate on Government support for UK-based tech companies. My Slough constituency is a huge tech and data hub; indeed, it has the second largest concentration of data centres anywhere in the world. Does he agree that it would be an act of folly for the Government not to designate Slough as an artificial intelligence growth zone, given that £1 spent there provides a much greater return for the UK economy? We as a nation would not want to lose that.

[Peter Fortune]

I have a list of Government follies here, if the hon. Member would like me to pass them on. In all seriousness, I completely agree with him on the importance of the industry and those jobs, and I am sure that the Minister will pick that up when he responds.

To give an example of the issues with these monopolies, Amazon was forced to remove the “Buy book” button from its Kindle app on iPhones because Apple demanded a 30% cut of every e-book sale. Authors simply cannot afford to forgo that 30%. Instead, readers had to—this is absurd—close the Kindle app, log on to the Amazon system separately, complete their purchase and then reopen the Kindle app. It was only thanks to a court case in the United States that forced Apple’s hand that the “Buy book” button returned.

Spotify cannot include a “Subscribe” button in its iOS app, nor can it tell users in the app what a subscription costs or that a cheaper option exists outside the app. UK Spotify Premium subscribers have faced three price rises in two years, partly because Apple’s 30% cut has to be absorbed somewhere. Every Spotify user in the UK is paying more, and Apple’s rules are a direct reason why.

There are many similar cases in which Apple and Google are inserting themselves directly into the relationship between developers and consumers by forcing developers to use their payment systems. That takes away a consumer’s ability to choose their preferred payment method, causes greater friction when there are issues such as refunds and cancellations, and prevents consumers from properly benefiting from lower prices or discounts.

The UK’s Competition Appeal Tribunal ruled in October 2025 that Apple’s payment restrictions were neither necessary nor proportionate for security or privacy purposes. They were designed to eliminate competition. It is as simple as that. It is estimated that removing the restrictions would release £1.75 billion a year that is currently taken from UK developers and consumers, rising to over £4 billion annually by 2029. That money could go back into British engineering, creative content and the next generation of app businesses built and scaled here. We could unleash the true potential of these industries.

The ability to remove the restrictions and hand UK app developers back their rights already exists in legislation. The Digital Markets, Competition and Consumers Act 2024 gave the CMA conduct-requirement powers—the ability not just to levy fines, but to mandate specific behaviours. The CMA can end Apple’s and Google’s control over in-app communication, ensuring that developers are free to know their own customers and tell their own customers what their own product costs and where to buy it at the best price. Could the Minister outline the Government’s view on pressing the CMA to issue conduct requirements that protect competition?

Another area that we must look at is cloud computing. The UK’s digital economy is underpinned by cloud computing, but cloud has been increasingly monopolised. The CMA’s cloud services market investigation estimated that Amazon Web Services and Microsoft control 70% to 90% of the UK’s cloud computing market. That concentration poses a number of dependency risks, including operational, financial and security vulnerabilities, and restricts market innovation and customer choice.

Just months after the Government published their “Chronic risks analysis”, there were three global cloud outages within a matter of weeks. In two of those, Amazon Web Services and Microsoft were directly impacted, highlighting the risks of over-reliance on a limited number of cloud hosts. Governments, businesses, digital platforms, AI services and individuals were materially impacted by the outages, with US companies alone suffering losses of between $500 million and $650 million. Indeed, the recent CrowdStrike outage is estimated to have cost the UK economy between £1.7 billion and £2.3 billion.

Competition can be the key mitigation for the UK’s digital dependency and, again, it is the CMA that holds the levers to tackle anti-competitive conduct and address the risks of cloud concentration. I am not calling for more legislation or regulation. We do not need it. With the Digital Markets, Competition and Consumers Act, brought in by the last Conservative Government, we have already legislated for stronger digital competition, but slow implementation and weak early enforcement risk squandering a rare pro-growth and pro-SME opportunity.

Only a small number of designations have been made so far. For Google’s and Apple’s mobile ecosystems, the CMA has relied on non-binding “commitments” rather than imposing binding conduct requirements. These non-binding commitments have no clear statutory basis under the 2024 Act, carry no legal consequences if breached and are not contemplated anywhere in the CMA’s published guidance. Their use risks weakening the regime and forcing the CMA to restart enforcement if firms fail to comply, which is precisely the outcome that the last Government sought to avoid. It is also concerning that a requirement for Google to negotiate fair terms with news publishers has been pushed back by at least 12 months, despite the CMA having previously committed to use that power in the first half of this year.

The Government must reaffirm that robust digital competition enforcement is pro-growth and central to the UK’s industrial strategy. Moreover, the CMA must ensure that there is robust competition enforcement. The levers to achieve that were put there by the last Government; it just requires some political will. Fundamentally, the UK cannot build globally competitive tech firms while a handful of dominant platforms control the routes to market, search, app stores, mobile ecosystems, cloud and key AI infrastructure.

The potential for huge economic growth from our tech sector is there, but competition is key. If competition flourishes, we will see more innovation, improved services and lower costs for consumers.

[Several hon. Members rose—]

--- Later in debate ---

[Peter Fortune]

I thank everybody for their contributions. Let me start with the party spokesmen. I pay tribute to the shadow Secretary of State, my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez), for her wisdom and her towering intellect in recognising the self-evident glamour that is dripping from me even as I stand here—it takes one to know one. As ever, she made informed points—and of course I agree with them, because she is my boss.

I thank the Minister for his response. There were many points in it that I agree with and some that I would like to have further conversation on—particularly the points about procurement. That is really important and will become an increasing challenge as we move forward.

The Liberal Democrat spokesperson, the hon. Member for Harpenden and Berkhamsted (Victoria Collins), set out a five-point plan that I would struggle to disagree with. In particular, outcomes-focused regulations would ensure that we have proper competition. It was encouraging that all three party spokespeople spoke from an informed and passionate place. That bodes well for the future.

I turn to the Back-Bench contributions. The hon. Member for Caerphilly (Chris Evans) talked about what a targeted group of engineers can do when they are given the space to flourish. He made some important points about UKRI and how it needs to be reorganised. We recently met the new chief executive, and there is a lot of work to do there, so perhaps the Minister would like to focus on that and push the way that UKRI distributes those funds.

I turn to the hon. and gallant Member for Tunbridge Wells (Mike Martin). I had a quick look on Wikipedia and found out that we were in the same regiment; I did not know that before. I think he was a young second lieutenant when I was a mere legend of history. We will meet afterwards and swap some stories. He highlighted the absurdity of losing potential unicorns—companies that start and can grow here—which are not able to get to the place they need to because there is no incubator for growth. That point was very well made.

The hon. Member for Paisley and Renfrewshire North (Alison Taylor) talked about how important access to finance is for the great companies that she highlighted, not just in her constituency but right across Scotland. If there were an injection of capital, we could see some glowing achievements.

The hon. Member for West Dorset (Edward Morello) talked about how technology can be used, and he especially focused on climate. We will face problems over the next 10 or 20 years, and we will need to develop that technology, some of which will have to be sovereign technology so that we can face those challenges.

Last but never, ever least, the hon. Member for Strangford (Jim Shannon) rose to his feet to say that he has many great things to say about Northern Ireland; we all know that Northern Ireland has many great things to say about him. I was amused when the hon. Member for Weston-super-Mare (Dan Aldridge) asked whether he had spoken to a company in Northern Ireland. He has spoken to everybody in Northern Ireland—twice. He made an important point about how the cyber-security industry has grown in the past 20 to 30 years, and I want to push the Minister gently on that. Something that was highlighted to us at Space-Comm last week was the need to develop the defence investment plan and get it out as quickly as possible. I will not put the boot in, because the debate has been good natured, but a lot of people in industry are really looking for that to be brought forward.

I am encouraged by this debate, which has been good natured and well informed. We all agree that if we get this right, with the right focus, we can be a world leader in this industry. We will punch not just above our weight but as technological champions. We have the opportunity to take the UK economy into the second half of the 21st century and beyond. I thank hon. Members for their contributions.

Question put and agreed to.

Resolved,

That this House has considered Government support for UK-based tech companies.