🔗 Share this article

The iPhone maker may have to permit rivals to run their own application platforms on iPhones across Britain, following a ruling from the competition regulator.

This represents a significant change to Apple's infamous "closed system" where applications can only be installed from the company's App Store.

But the UK competition watchdog has designated both Apple and Google as having "strategic market status" - indicating they have a lot of power over smartphone ecosystems.

Regulatory Assessment

The regulator said the tech firms "may be limiting progress and market rivalry".

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

"The app economy generates one and a half percent of the UK's GDP and sustains around four hundred thousand positions, which is why it's essential these sectors function properly for enterprises," commented a top executive from the CMA.

Approximately ninety to one hundred percent of UK mobile devices operate using the two tech companies' mobile platforms, creating what the authority calls an "virtual monopoly".

Based on current data, nearly half of UK mobile owners use an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using the Android OS.

The Company's Reaction

The CMA's investigation focused on how dominant Apple and Google's own apps are versus competitors - as well as their browsers and platform software.

It is unclear what modifications the regulator will seek to implement, but earlier it published guidelines detailing possible actions it could take.

These comprise mandating it to be easier for people to switch between Apple and Android devices, and for both firms to list applications "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company particularly may be required to allow third-party marketplaces on its devices, and enable people to download programs directly from developer sites.

This would follow comparable regulations in the European Union, which previously took action against Apple for anti-competitive behaviour.

The technology firm warned the UK could face delays to getting new features - as has happened in the EU - which the company blames on strict rules.

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

"We faces intense rivalry in every sector where we operate, and we strive continuously to create the best products, services and user experience," the company said in a statement.

"Britain's implementation of European regulations would weaken that, leaving users with reduced data protection and security, delayed access to new features, and a fragmented, less seamless user journey."

Google's Position

Google device owners can currently use third-party app stores - though commentators say they are not as smooth as Google's own application marketplace.

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

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

The representative said "the majority" of Google device owners use third-party platforms or download apps directly from a developer's website, and asserted there is a far greater range of apps offered for Google device owners compared to those on Apple devices.

"Currently available are 24,000 Android phone models from thirteen hundred phone manufacturers globally, facing strong rivalry from iOS in the UK," the spokesperson added.

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

The company contends this means it opens up competition.

But advocacy organizations said restrictions on these companies' power in other countries "currently assist businesses to innovate and providing customers more options".

"The companies' control is now causing real harm by limiting options for users and competition for businesses," stated a policy expert.