🔗 Share this article

The iPhone maker could be required to permit rivals to operate their own app stores on Apple devices in the UK, after a decision from the market watchdog.

This would be a major shift to Apple's infamous "closed system" where apps can only be downloaded from the company's official marketplace.

But the UK competition watchdog has classified both the tech giants as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Regulatory Findings

The regulator said the two companies "could be restricting progress and competition".

But the authority emphasized it did not "find or assume wrongdoing" from the firms.

"The app economy contributes one and a half percent of the British economy and sustains around 400,000 jobs, which is why it's essential these sectors function properly for enterprises," commented a top executive from the competition authority.

Approximately ninety to one hundred percent of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "effective duopoly".

According to recent analysis, nearly half of British smartphone users use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the remaining users using the Android OS.

Apple's Reaction

The regulatory probe examined how dominant Apple and Google's own apps are versus competitors - as well as their web applications and operating systems.

It is unclear what modifications the authority will seek to implement, but earlier it published guidelines detailing possible actions it could take.

These comprise requiring it to be easier for people to transition between Apple and Android phones, and for both companies to list applications "fairly and openly" in their app stores.

The Cupertino company specifically may be compelled to permit alternative app stores on its devices, and enable people to download programs directly from developer sites.

This would mirror a similar ruling in the European Union, which previously imposed measures against the company for restrictive practices.

Apple warned the UK could lose access to getting new features - as has happened in the European Union - which the company blames on heavy regulation.

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

"We encounters fierce competition in every sector where we operate, and we strive continuously to create the best products, services and user experience," the organization said in a release.

"Britain's implementation of EU-style rules would undermine that, resulting in consumers with reduced data protection and security, delayed access to latest functions, and a divided, more complicated user journey."

Google's Position

Android users can presently use third-party app stores - though critics say they are not as smooth as Google's own Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of downloading apps directly from online sources, as well as "remove user frictions" when using alternative app stores.

"There appears to be no the justification for the current classification," a company competition lead stated.

The executive said "most" of Google device owners use third-party platforms or install applications straight from a developer's website, and asserted there is a much wider selection of applications offered for Android users compared to those on iOS products.

"Currently available are twenty-four thousand Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from iOS in the UK," the spokesperson continued.

Google's platform is an open-source operating system, which means developers can utilize and develop on top of it for free.

The company contends this means it promotes competition.

But consumer groups said curbs on these firms' dominance in other countries "currently assist enterprises to develop and giving consumers more choice".

"Their dominance is now creating genuine problems by restricting choice for users and market rivalry for companies," stated a policy expert.