🔗 Share this article

The iPhone maker could be required to allow rivals to run separate app stores on iPhones across Britain, after a decision from the market watchdog.

This represents a major shift to the company's well-known "walled garden" where applications can only be downloaded from its own App Store.

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - effectively saying they have significant control over smartphone ecosystems.

Watchdog Findings

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

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

"The app economy generates 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these markets function properly for business," commented a top executive from the competition authority.

Around ninety to one hundred percent of British smartphones run on Apple or Google's operating systems, creating what the authority calls an "virtual monopoly".

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

The Company's Response

The CMA's investigation focused on how prominent the companies' own apps are compared with rivals - as well as their browsers and platform software.

It is unclear what modifications the authority will seek to implement, but previously 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 firms to list applications "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company particularly may be compelled to permit third-party marketplaces on its devices, and enable people to install apps directly from companies' websites.

This would mirror a similar ruling in the EU, which previously took action against Apple for anti-competitive behaviour.

Apple cautioned the United Kingdom could lose access to getting new features - as has occurred in the European Union - which the company attributes to heavy regulation.

For instance, some Apple Intelligence features which have been launched in other parts of the world are not accessible in the EU.

"We 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 release.

"Britain's implementation of European regulations would undermine that, leaving users 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 currently use alternative marketplaces - though critics say they are not as smooth as Google's own Play Store.

The regulator's plan said the search company may have to "modify the interface" of downloading apps straight from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the justification for the current classification," a company competition lead remarked.

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

"There are now twenty-four thousand Google-compatible devices from 1,300 device makers worldwide, facing strong rivalry from iOS in the UK," the spokesperson added.

Android is an open-source operating system, which means developers can utilize and develop on top of it for no cost.

The company contends this means it opens up competition.

But consumer groups said restrictions on these companies' power in different nations "currently assist enterprises to develop and giving customers more options".

"The companies' control is now creating genuine problems by restricting choice for consumers and market rivalry for companies," stated a policy expert.