🔗 Share this article

The iPhone maker could be required to allow rivals to operate their own app stores on Apple devices across Britain, after a decision from the competition regulator.

This represents a significant change to Apple's well-known "closed system" where applications can only be installed from its own official marketplace.

But the Competition and Markets Authority has classified both Apple and Google as having "dominant market position" - indicating they have significant control over smartphone ecosystems.

Regulatory Assessment

The regulator said the tech firms "could be restricting innovation and competition".

But the regulator clarified it did not "find or assume misconduct" from the firms.

"The app economy generates 1.5% of the UK's GDP and supports around four hundred thousand positions, which is why it's essential these sectors function properly for business," stated a senior official from the CMA.

Around 90-100% of UK mobile devices run on the two tech companies' mobile platforms, creating what the authority calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners own an iPhone - which runs Apple's iOS - with the overwhelming bulk of the rest using the Android OS.

The Company's Reaction

The CMA's investigation focused on how dominant Apple and Google's own applications are compared with rivals - as well as their web applications and operating systems.

It is unknown what modifications the regulator will look to request, but previously it published guidelines outlining possible actions it could take.

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

Apple specifically may be compelled to allow alternative app stores on its devices, and let people to download programs straight from companies' websites.

This would mirror comparable regulations in the EU, which previously took action against the company for anti-competitive behaviour.

The technology firm cautioned the UK could lose access to receiving updates - as has occurred in the EU - which the company blames on heavy regulation.

For instance, some AI capabilities which have been launched in other parts of the world are not accessible in the European market.

"Apple encounters fierce competition in every market where we do business, and we work tirelessly to create the finest offerings, services and customer interface," the organization said in a release.

"The UK's adoption of European regulations would undermine that, resulting in consumers with reduced data protection and safety, delayed access to new features, and a fragmented, more complicated user journey."

Google's Standpoint

Google device owners can presently use third-party app stores - though commentators say they are not as smooth as the company's official Play Store.

The regulator's plan said Google may have to "change the user experience" of downloading apps straight from websites, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the rationale for today's designation decision," a Google competition lead stated.

The representative said "the majority" of Android users use third-party platforms or install applications straight from a creator's site, and asserted there is a far greater range of applications available for Google device owners versus those on iOS products.

"Currently available are 24,000 Google-compatible devices from thirteen hundred device makers worldwide, facing strong rivalry from iOS in the UK," the spokesperson continued.

Google's platform is an freely available software, which means developers can use and build on top of it for no cost.

The company argues this means it promotes market competition.

But consumer groups said restrictions on these firms' dominance in other countries "are already helping businesses to develop and providing customers more choice".

"The companies' control is now causing real harm by limiting options for users and competition for businesses," commented a consumer advocate.