🔗 Share this article

Apple could be required to permit competitors to operate their own app stores on Apple devices in the UK, following a decision from the market watchdog.

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

But the Competition and Markets Authority has classified both Apple and Google as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Regulatory Findings

The regulator said the two companies "may be limiting progress and market rivalry".

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

"Mobile applications contributes 1.5% of the British economy and sustains around 400,000 jobs, which is why it's crucial these sectors work well for enterprises," stated a top executive from the CMA.

Approximately 90-100% of UK mobile devices operate using the two tech companies' operating systems, creating what the authority calls an "effective duopoly".

According to recent analysis, nearly half of UK mobile owners use an Apple device - which runs the iOS operating system - with the overwhelming bulk of the remaining users using the Android OS.

The Company's Reaction

The CMA's investigation focused on how prominent the companies' own apps are versus rivals - as well as their web applications and platform software.

It is unknown what modifications the regulator will seek to implement, but earlier it published roadmaps outlining potential measures it could take.

These include requiring it to be more straightforward for people to transition between iOS and Android phones, and for both companies to list applications "in a fair, objective and transparent manner" in their app stores.

Apple particularly may be compelled to permit third-party marketplaces on its products, and enable people to download programs directly from companies' websites.

This would mirror a similar ruling in the European Union, which previously took action against Apple for restrictive practices.

The technology firm warned the United Kingdom could lose access to getting new features - as has happened in the EU - which the company blames on strict rules.

For instance, some Apple Intelligence capabilities which have been rolled out in other parts of the world are not available in the European market.

"Apple faces fierce competition in every sector where we operate, and we strive continuously to create the finest offerings, solutions and customer interface," the organization said in a statement.

"Britain's implementation of EU-style rules would undermine that, leaving users with reduced data protection and security, delayed access to latest functions, and a fragmented, less seamless user journey."

The Search Giant's Position

Android users can presently use third-party app stores - though commentators say they are not as smooth as Google's own application marketplace.

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

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

The executive said "the majority" of Android users use alternative app stores or download apps directly from a creator's site, and asserted there is a much wider selection of apps available for Android users compared to those on iOS products.

"Currently available are twenty-four thousand Android phone models from thirteen hundred device makers globally, facing intense competition from Apple's platform in the UK," the spokesperson continued.

Android is an freely available software, which means developers can utilize and develop on top of it for no cost.

Google argues this means it promotes competition.

But consumer groups said restrictions on these companies' power in other countries "currently assist businesses to develop and giving customers more choice".

"Their dominance is now creating genuine problems by restricting choice for users and competition for businesses," commented a consumer advocate.