🔗 Share this article

Apple could be required to permit competitors to run their own app stores on Apple devices across Britain, following a ruling from the market watchdog.

This would be a major shift to Apple's well-known "walled garden" where apps can only be installed from the company's App Store.

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

Regulatory Findings

The CMA said the tech firms "may be limiting progress and competition".

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

"The app economy generates one and a half percent of the UK's GDP and sustains around 400,000 jobs, which is why it's essential these markets function properly for enterprises," stated a senior official from the competition authority.

Approximately 90-100% of UK mobile devices operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

According to recent analysis, nearly half of UK mobile owners use an iPhone - which runs Apple's iOS - with the overwhelming bulk of the remaining users using Google's Android.

Apple's Reaction

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

It is unknown what modifications the authority will look to request, but previously it published roadmaps 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 firms to list applications "fairly and openly" in their marketplaces.

The Cupertino company specifically may be compelled to allow third-party marketplaces on its devices, and enable people to download programs straight from companies' websites.

This would mirror comparable regulations in the European Union, which previously imposed measures against Apple for restrictive practices.

The technology firm cautioned the UK could face delays to receiving updates - as has occurred in the European Union - which the organization attributes to heavy regulation.

For instance, some Apple Intelligence features which have been launched in other regions are not available in the European market.

"We faces intense rivalry in every market where we operate, and we strive continuously to create the best products, solutions and user experience," the organization said in a release.

"The UK's adoption of EU-style rules would undermine that, resulting in consumers with reduced data protection and security, slower availability to latest functions, and a divided, more complicated experience."

Google's Position

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

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

"We simply do not see the rationale for the current classification," a Google policy executive stated.

The executive said "most" of Google device owners use alternative app stores or download apps directly from a creator's site, and claimed there is a much wider selection of apps available for Google device owners compared to those on iOS products.

"There are now 24,000 Android phone models from 1,300 device makers worldwide, facing strong rivalry from Apple's platform in the UK," the representative added.

Android is an open-source operating system, which means creators can utilize and develop on top of it for no cost.

The company contends this means it promotes market competition.

But advocacy organizations said curbs on these companies' power in different nations "currently assist businesses 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 consumer advocate.