🔗 Share this article

The iPhone maker could be required to permit competitors to operate their own app stores on iPhones in the UK, following a decision from the market watchdog.

This would be a significant change to the company's infamous "closed system" where apps can only be installed from its own official marketplace.

But the Competition and Markets Authority has classified both the tech giants as having "dominant market position" - indicating they have significant control over mobile platforms.

Regulatory Assessment

The CMA said the two companies "could be restricting innovation and competition".

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

"The app economy generates one and a half percent of the British economy and supports around four hundred thousand positions, which is why it's essential these sectors function properly for enterprises," commented a senior official from the CMA.

Approximately 90-100% of British smartphones run on the two tech companies' operating systems, creating what the authority calls an "virtual monopoly".

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

Apple's Reaction

The CMA's investigation focused on how prominent the companies' own applications are compared with competitors - as well as their browsers and operating systems.

It is unknown what changes 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 switch between iOS and Android phones, and for both companies to rank apps "fairly and openly" in their marketplaces.

Apple particularly may be required to allow alternative app stores on its products, and enable people to install apps directly from companies' websites.

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

Apple warned the United Kingdom could lose access to receiving updates - as has happened in the European Union - which the organization attributes to heavy regulation.

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

"Apple encounters fierce competition in every market where we operate, and we strive continuously to create the finest offerings, services and customer interface," the organization said in a release.

"Britain's implementation of EU-style rules would weaken that, resulting in consumers with weaker privacy and security, slower availability to latest functions, and a divided, more complicated user journey."

The Search Giant's Standpoint

Google device owners can currently use alternative marketplaces - though commentators say they are not as user-friendly as the company's official Play Store.

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 third-party platforms.

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

The executive said "the majority" of Android users use third-party platforms or download apps directly from a creator's site, and claimed there is a far greater range of applications offered for Google device owners compared to those on Apple devices.

"There are now 24,000 Android phone models from thirteen hundred phone manufacturers globally, facing intense competition from iOS in the UK," the spokesperson continued.

Google's platform is an open-source operating system, which means creators can use and build on top of it for no cost.

Google contends this means it promotes competition.

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

"The companies' control is now causing real harm by limiting options for consumers and competition for companies," stated a consumer advocate.