🔗 Share this article

The iPhone maker may have to permit rivals to operate their own application platforms on Apple devices in the UK, after a ruling from the competition regulator.

This represents a significant change to Apple's well-known "closed system" where applications can only be downloaded from its own App Store.

But the UK competition watchdog has classified both Apple and Google as having "dominant market position" - effectively saying they have a lot of power over mobile platforms.

Watchdog Findings

The CMA said the tech firms "could be restricting innovation and competition".

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

"Mobile applications generates one and a half percent of the British economy and sustains around four hundred thousand positions, which is why it's crucial these sectors work well for enterprises," stated a senior official from the CMA.

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

Based on recent analysis, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the rest using Google's Android.

Apple's Reaction

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

It is unknown what modifications the regulator will look to request, but previously it published roadmaps outlining potential measures it could take.

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

Apple specifically may be compelled to allow alternative app stores on its devices, and enable people to download programs straight from developer sites.

This would mirror comparable regulations in the European Union, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm cautioned the United Kingdom could lose access to receiving updates - as has happened in the European Union - which the company attributes to heavy regulation.

For example, some AI capabilities which have been launched in other parts of the world are not accessible in the European market.

"Apple faces fierce competition in every sector where we operate, and we work tirelessly to create the best products, solutions and user experience," the company said in a statement.

"The UK's adoption of EU-style rules would weaken that, resulting in consumers with reduced data protection and security, slower availability to latest functions, and a fragmented, less seamless experience."

The Search Giant'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 Google may have to "modify the interface" of installing applications straight from online sources, 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 executive said "most" of Google device owners use alternative app stores or install applications directly from a developer's website, and asserted there is a far greater range of apps available for Android users compared to those on iOS products.

"Currently available are 24,000 Google-compatible devices from thirteen hundred device makers worldwide, facing intense competition from Apple's platform in the UK," the representative continued.

Android is an open-source operating system, which means creators can utilize and develop on top of it for free.

Google argues this means it promotes market competition.

But advocacy organizations said restrictions on these companies' power in other countries "are already helping businesses to innovate and providing consumers more options".

"Their dominance is now causing real harm by limiting options for consumers and market rivalry for businesses," commented a consumer advocate.