🔗 Share this article

Apple could be required to permit rivals to run their own app stores on iPhones across Britain, following a decision from the market watchdog.

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

But the UK competition watchdog has classified both Apple and Google as having "dominant market position" - indicating they have a lot of power over smartphone ecosystems.

Watchdog Findings

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

But the regulator emphasized it did not "determine or presume wrongdoing" from the companies.

"The app economy contributes 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," commented a senior official from the CMA.

Around 90-100% of UK mobile devices operate using Apple or Google's mobile platforms, creating what the authority calls an "effective duopoly".

According to current data, 48.5% of British smartphone users own an Apple device - which runs the iOS operating system - with the vast majority of the rest using the Android OS.

Apple's Response

The regulatory probe examined how dominant the companies' own applications are compared with rivals - as well as their browsers and operating systems.

It is unclear what changes 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 devices, and for both firms to rank apps "fairly and openly" in their marketplaces.

Apple particularly may be compelled to permit alternative app stores on its products, and let people to download programs straight from companies' websites.

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

The technology firm warned the UK could face delays to receiving updates - as has happened in the European Union - which the organization attributes to strict rules.

For example, some AI capabilities which have been rolled out in other regions are not accessible in the EU.

"Apple encounters intense rivalry in every market where we do business, and we strive continuously to create the finest offerings, solutions and user experience," the company said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with reduced data protection and security, delayed access to new features, and a fragmented, less seamless experience."

Google's Standpoint

Android users can presently use alternative marketplaces - though commentators say they are not as user-friendly as Google's own application marketplace.

The CMA's roadmap said the search company may have to "change the user experience" of installing applications directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"There appears to be no the justification for today's designation decision," a company competition lead remarked.

The executive said "the majority" of Android users use third-party platforms or install applications straight from a developer's website, and claimed there is a far greater range of applications available for Android users versus those on Apple devices.

"Currently available are 24,000 Android phone models from thirteen hundred device makers worldwide, facing intense competition from iOS in the United Kingdom," the representative continued.

Android is an freely available software, which means creators can use and build on top of it for no cost.

Google argues this means it promotes market competition.

But consumer groups said restrictions on these companies' power in other countries "are already helping enterprises to develop and giving consumers more options".

"The companies' control is now creating genuine problems by limiting options for consumers and competition for businesses," commented a policy expert.