Apple could be compelled to permit competing application marketplaces within the United Kingdom.

Placeholder image Illustration of app stores

Apple may have to permit rivals to operate their own application platforms on Apple devices in the UK, following a decision from the market watchdog.

This represents a significant change to the company's infamous "walled garden" where apps can only be downloaded from its own official marketplace.

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

Regulatory Findings

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

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

"Mobile applications contributes 1.5% of the British economy and sustains around four hundred thousand positions, which is why it's crucial these markets function properly for enterprises," stated a senior official from the competition authority.

Approximately ninety to one hundred percent of British smartphones operate using the two tech companies' mobile platforms, creating what the regulator calls an "effective duopoly".

Based on current data, nearly half of British smartphone users own an iPhone - which runs Apple's iOS - with the vast majority of the remaining users using the Android OS.

Apple's Reaction

The regulatory probe focused on how prominent Apple and Google's own apps are compared with rivals - as well as their browsers and operating systems.

It is unknown what modifications the regulator will look to request, but previously it published roadmaps detailing possible actions it could take.

These comprise requiring it to be more straightforward for people to switch between Apple and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their marketplaces.

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

This would follow a similar ruling in the EU, which previously imposed measures against the company for anti-competitive behaviour.

The technology firm warned the United Kingdom could lose access to receiving updates - as has happened in the EU - which the organization attributes to strict rules.

For instance, some Apple Intelligence features which have been rolled out in other regions are not available in the EU.

"We faces fierce competition in every market where we do business, and we strive continuously to create the best products, solutions and user experience," the organization said in a release.

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

Google's Standpoint

Google device owners can presently use third-party app stores - though commentators say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said Google may have to "modify the interface" of installing applications straight from online sources, as well as "remove user frictions" when using alternative app stores.

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

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

"There are now twenty-four thousand Android phone models from thirteen hundred device makers globally, facing strong rivalry from Apple's platform in the United Kingdom," the representative added.

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

The company argues this means it promotes competition.

But advocacy organizations said curbs on these firms' dominance in different nations "are already helping businesses to develop and giving consumers more choice".

"The companies' control is now creating genuine problems by limiting options for users and competition for companies," stated a consumer advocate.

Dennis Pratt
Dennis Pratt

A tech enthusiast and writer passionate about emerging technologies and their impact on society.