Apple could be compelled to allow rival application marketplaces within the United Kingdom.

Placeholder image Illustration of app stores

Apple could be required to permit rivals to run their own application platforms on Apple devices across Britain, following a ruling from the competition regulator.

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

But the Competition and Markets Authority has designated both the tech giants as having "strategic market status" - indicating they have a lot of power over mobile platforms.

Watchdog Assessment

The regulator said the tech firms "could be restricting progress and market rivalry".

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

"Mobile applications contributes 1.5% of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these markets work well 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, nearly half 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.

The Company's Response

The CMA's investigation focused on how dominant the companies' own apps are compared with rivals - as well as their web applications and operating systems.

It is unknown what modifications the authority will look to request, but earlier it published guidelines detailing potential measures it could take.

These include mandating it to be easier for people to transition between Apple and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

Apple particularly may be required to allow third-party marketplaces on its devices, and let people to download programs directly from developer sites.

This would mirror comparable regulations in the EU, which previously took action against the company for anti-competitive behaviour.

The technology firm warned the United Kingdom could face delays to getting new features - as has happened in the EU - which the company attributes to heavy regulation.

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

"We faces intense rivalry in every market where we do business, and we strive continuously to create the finest offerings, services and customer interface," the company said in a release.

"The UK's adoption of EU-style rules would undermine that, leaving users with weaker privacy and security, slower availability to latest functions, and a divided, more complicated user journey."

Google's Standpoint

Android users can currently use alternative marketplaces - though commentators say they are not as smooth as the company's official Play Store.

The CMA's roadmap said the search company may have to "change the user experience" of downloading apps directly from online sources, as well as "remove user frictions" when using alternative app stores.

"There appears to be no the rationale for the current classification," a Google competition lead stated.

The executive said "most" of Google device owners use third-party platforms or install applications directly from a creator's site, and asserted there is a far greater range of apps available for Google device owners compared to those on iOS products.

"Currently available are 24,000 Google-compatible devices from 1,300 device makers worldwide, facing intense competition from Apple's platform in the United Kingdom," the representative added.

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

The company contends this means it opens up market competition.

But advocacy organizations said curbs on these companies' power in different nations "are already helping enterprises to develop and providing customers more choice".

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

Jennifer Miller
Jennifer Miller

A tech enthusiast and software developer with a passion for exploring emerging technologies and sharing knowledge through insightful articles.