🔗 Share this article

Apple could be required to allow rivals to operate separate app stores on iPhones across Britain, following a ruling from the market watchdog.

This represents a major shift to the company's well-known "closed system" where apps can only be downloaded from the company's App Store.

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Regulatory Findings

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

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

"The app economy generates 1.5% of the British economy and sustains around 400,000 jobs, which is why it's essential these markets function properly for business," stated a senior official from the competition authority.

Approximately ninety to one hundred percent of British smartphones run on the two tech companies' operating systems, creating what the regulator calls an "effective duopoly".

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

Apple's Reaction

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

It is unclear what changes the regulator will look to request, but earlier it published guidelines detailing possible actions it could take.

These comprise mandating it to be more straightforward for people to switch between iOS and Android devices, and for both firms to rank apps "fairly and openly" in their app stores.

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

This would follow comparable regulations in the EU, which previously imposed measures against Apple for restrictive practices.

The technology firm cautioned the United Kingdom could lose access to getting new features - as has happened in the EU - which the organization attributes to heavy regulation.

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

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

"Britain's implementation of European regulations would weaken that, leaving users with reduced data protection and security, delayed access to latest functions, and a divided, more complicated user journey."

Google's Standpoint

Android users can currently use third-party app stores - though commentators say they are not as user-friendly as the company's official application marketplace.

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

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

The representative said "most" of Google device owners use third-party platforms or download apps directly from a creator's site, and asserted there is a far greater range of apps available for Google device owners compared to those on iOS products.

"Currently available are 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing intense competition from Apple's platform 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 no cost.

Google contends this means it promotes competition.

But advocacy organizations said restrictions on these firms' dominance in different nations "currently assist enterprises to innovate and giving consumers more options".

"The companies' control is now causing real harm by restricting choice for users and market rivalry for businesses," commented a policy expert.