🔗 Share this article

The iPhone maker could be required to allow competitors to run separate app stores on Apple devices in the UK, following a decision from the competition regulator.

This represents a significant change to the company's well-known "closed system" where applications can only be installed from the company's App Store.

But the UK competition watchdog has classified both the tech giants as having "dominant market position" - indicating they have significant control over mobile platforms.

Regulatory Findings

The CMA said the tech firms "could be restricting progress and competition".

But the authority clarified it did not "determine or presume wrongdoing" from the firms.

"The app economy contributes 1.5% of the British economy and supports around 400,000 jobs, which is why it's essential these sectors work well for business," stated a senior official from the CMA.

Approximately 90-100% of British smartphones run on the two tech companies' mobile platforms, creating what the regulator calls an "virtual monopoly".

According to recent analysis, 48.5% of British smartphone users own an iPhone - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

Apple's Response

The regulatory probe focused on how prominent Apple and Google's own apps are compared with competitors - as well as their web applications and platform software.

It is unclear what modifications the regulator will seek to implement, but earlier it published guidelines outlining potential measures it could take.

These comprise requiring it to be more straightforward for people to transition between Apple and Android phones, and for both companies to rank apps "fairly and openly" in their app stores.

The Cupertino company specifically may be required to allow alternative app stores on its devices, and let people to download programs directly from companies' websites.

This would mirror a similar ruling in the EU, which previously imposed measures against the company for anti-competitive behaviour.

Apple warned the UK could face delays to receiving updates - as has occurred in the EU - which the organization attributes to heavy regulation.

For example, some Apple Intelligence capabilities which have been launched in other regions are not accessible in the EU.

"Apple encounters intense rivalry in every sector where we do business, and we work tirelessly to create the best products, solutions and customer interface," the company said in a release.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and safety, delayed access to latest functions, and a fragmented, more complicated experience."

The Search Giant's Standpoint

Google device owners can presently use third-party app stores - though commentators say they are not as user-friendly as the company's official application marketplace.

The regulator's plan said Google may have to "modify the interface" of downloading apps directly from websites, as well as "remove user frictions" when using third-party platforms.

"There appears to be no the justification for the current classification," a Google policy executive stated.

The representative said "the majority" of Android users use alternative app stores or download apps directly from a developer's website, and claimed there is a much wider selection of applications available for Google device owners compared to those on iOS products.

"There are now 24,000 Android phone models from 1,300 phone manufacturers worldwide, facing intense competition from Apple's platform in the UK," the representative added.

Google's platform is an freely available software, which means developers can use and build on top of it for free.

The company argues this means it opens up market competition.

But consumer groups said curbs on these firms' dominance in different nations "currently assist businesses to innovate and giving customers more choice".

"Their dominance is now causing real harm by restricting choice for consumers and competition for businesses," commented a consumer advocate.