The Digital Tug-of-War: Empowering UK SMEs Against Tech Giants
May 15, 2025, 5:00 pm
Location: United Kingdom, England, Blackpool
Employees: 201-500
Founded date: 1974
In the heart of the UK economy lies a battle. A battle between innovation and stagnation. A battle between small businesses and tech giants. The stakes are high. The future of the UK’s economic growth hangs in the balance.
Recent reports have painted a stark picture. The Institute of Public Policy Research (IPPR) has raised alarms about the duopoly of Apple and Google. Their grip on app marketplaces is tightening. It’s like a vice, squeezing the life out of innovation and investment. The Competition and Markets Authority (CMA) must step up. It needs to be the knight in shining armor for small and medium-sized enterprises (SMEs).
The IPPR argues that the CMA should be “beefed up.” This isn’t just a call to action; it’s a clarion call for change. The report highlights that Apple and Google charge up to 30% in commission fees on in-app purchases. This isn’t just a number; it’s a barrier. A barrier that prevents UK developers from thriving. In 2024 alone, these tech titans are estimated to have pocketed between £1.5 billion and £2.4 billion from UK app store revenues. That’s money that could fuel innovation, create jobs, and boost wages.
Imagine a world where commission fees are slashed to 12%. It’s not just a dream; it’s a possibility. The IPPR suggests that this shift could redirect £1.4 billion back to UK developers in 2024. By 2029, that figure could swell to £3.3 billion. This isn’t just about numbers; it’s about empowering local businesses. It’s about fostering a culture of innovation.
The report echoes a growing sentiment. Voices from various sectors are uniting against the dominance of Apple and Google. Former CMA chair Lord Andrew Tyrie warns that weak competition enforcement leads to “lower growth, less innovation, and widening income differentials.” This isn’t just a statistic; it’s a reality. Competition is the lifeblood of free enterprise. Without it, businesses wither.
The Federation of Small Businesses (FSB) is also in the fray. They argue for stronger oversight. Digital markets need forward-looking regulation. This isn’t just about protecting incumbents; it’s about championing entrepreneurial spirit. Small businesses are the backbone of the UK economy. They deserve a fighting chance.
But the battle doesn’t end there. Late payments are another enemy lurking in the shadows. A staggering £112 billion is owed to SMEs in overdue invoices. This isn’t just a financial issue; it’s a cash flow crisis. The Centre for Economics and Business Research (CEBR) highlights that the average small business is owed £42,000. That’s money that could be used for investment, growth, and resilience.
The government is aware. Business Secretary Jonathan Reynolds has opened a consultation on late payments. This is a step in the right direction. But it needs to be more than just talk. Action is essential. The government must create an environment where businesses can thrive. Late payments are choking the lifeblood of SMEs. They are holding back the very engine of the economy.
The CEBR’s findings reveal a troubling trend. Payment times may be improving slightly, but the value of overdue invoices is rising. This is a double-edged sword. The average late invoice is now comparable to the cash a small business holds. This is a recipe for disaster. It’s a barrier to growth and investment.
Industry bodies are calling for digital strategies to combat this issue. The use of artificial intelligence could be a game-changer. AI can spot invoice errors and streamline processes. E-invoicing could reduce late payments by up to 20%. This isn’t just a pipe dream; it’s a tangible solution.
Derk Bleeker from Sage emphasizes that outdated systems are holding businesses back. The solution is within reach. Technology can reduce costs and administrative burdens. It’s time to embrace innovation, not just in app marketplaces but across the board.
The UK economy stands at a crossroads. On one side, there are tech giants with their deep pockets and monopolistic practices. On the other, there are SMEs, the lifeblood of the economy, struggling to survive. The CMA must act. It must wield its newfound powers to ensure fair competition.
The future of the UK economy depends on it. Empowering SMEs is not just a policy choice; it’s a necessity. It’s about creating a level playing field. It’s about fostering innovation and growth. The time for action is now. The battle for the soul of the UK economy is on. Will we rise to the challenge? Only time will tell.
Recent reports have painted a stark picture. The Institute of Public Policy Research (IPPR) has raised alarms about the duopoly of Apple and Google. Their grip on app marketplaces is tightening. It’s like a vice, squeezing the life out of innovation and investment. The Competition and Markets Authority (CMA) must step up. It needs to be the knight in shining armor for small and medium-sized enterprises (SMEs).
The IPPR argues that the CMA should be “beefed up.” This isn’t just a call to action; it’s a clarion call for change. The report highlights that Apple and Google charge up to 30% in commission fees on in-app purchases. This isn’t just a number; it’s a barrier. A barrier that prevents UK developers from thriving. In 2024 alone, these tech titans are estimated to have pocketed between £1.5 billion and £2.4 billion from UK app store revenues. That’s money that could fuel innovation, create jobs, and boost wages.
Imagine a world where commission fees are slashed to 12%. It’s not just a dream; it’s a possibility. The IPPR suggests that this shift could redirect £1.4 billion back to UK developers in 2024. By 2029, that figure could swell to £3.3 billion. This isn’t just about numbers; it’s about empowering local businesses. It’s about fostering a culture of innovation.
The report echoes a growing sentiment. Voices from various sectors are uniting against the dominance of Apple and Google. Former CMA chair Lord Andrew Tyrie warns that weak competition enforcement leads to “lower growth, less innovation, and widening income differentials.” This isn’t just a statistic; it’s a reality. Competition is the lifeblood of free enterprise. Without it, businesses wither.
The Federation of Small Businesses (FSB) is also in the fray. They argue for stronger oversight. Digital markets need forward-looking regulation. This isn’t just about protecting incumbents; it’s about championing entrepreneurial spirit. Small businesses are the backbone of the UK economy. They deserve a fighting chance.
But the battle doesn’t end there. Late payments are another enemy lurking in the shadows. A staggering £112 billion is owed to SMEs in overdue invoices. This isn’t just a financial issue; it’s a cash flow crisis. The Centre for Economics and Business Research (CEBR) highlights that the average small business is owed £42,000. That’s money that could be used for investment, growth, and resilience.
The government is aware. Business Secretary Jonathan Reynolds has opened a consultation on late payments. This is a step in the right direction. But it needs to be more than just talk. Action is essential. The government must create an environment where businesses can thrive. Late payments are choking the lifeblood of SMEs. They are holding back the very engine of the economy.
The CEBR’s findings reveal a troubling trend. Payment times may be improving slightly, but the value of overdue invoices is rising. This is a double-edged sword. The average late invoice is now comparable to the cash a small business holds. This is a recipe for disaster. It’s a barrier to growth and investment.
Industry bodies are calling for digital strategies to combat this issue. The use of artificial intelligence could be a game-changer. AI can spot invoice errors and streamline processes. E-invoicing could reduce late payments by up to 20%. This isn’t just a pipe dream; it’s a tangible solution.
Derk Bleeker from Sage emphasizes that outdated systems are holding businesses back. The solution is within reach. Technology can reduce costs and administrative burdens. It’s time to embrace innovation, not just in app marketplaces but across the board.
The UK economy stands at a crossroads. On one side, there are tech giants with their deep pockets and monopolistic practices. On the other, there are SMEs, the lifeblood of the economy, struggling to survive. The CMA must act. It must wield its newfound powers to ensure fair competition.
The future of the UK economy depends on it. Empowering SMEs is not just a policy choice; it’s a necessity. It’s about creating a level playing field. It’s about fostering innovation and growth. The time for action is now. The battle for the soul of the UK economy is on. Will we rise to the challenge? Only time will tell.