The tech giant may be forced to allow competing application marketplaces within the United Kingdom.

Placeholder image Illustration of app stores

The iPhone maker may have to allow competitors to run their own app stores on Apple devices across Britain, following a ruling from the competition regulator.

This would be a significant change to the company's well-known "closed system" where applications can only be installed from the company's App Store.

But the Competition and Markets Authority has designated both Apple and Google as having "dominant market position" - indicating they have significant control over smartphone ecosystems.

Regulatory Findings

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

But the authority clarified it did not "determine or presume misconduct" from the companies.

"Mobile applications contributes one and a half percent of the British economy and sustains around four hundred thousand positions, which is why it's essential these sectors work well for enterprises," commented a senior official from the competition authority.

Around ninety to one hundred percent of UK mobile devices operate using the two tech companies' operating systems, creating what the authority calls an "effective duopoly".

According to recent analysis, 48.5% of UK mobile owners use an Apple device - which runs Apple's iOS - with the vast majority of the remaining users using Google's Android.

Apple's Reaction

The regulatory probe focused on how dominant Apple and Google's own applications are compared with rivals - as well as their web applications and operating systems.

It is unknown what changes the regulator will seek to implement, but earlier it published guidelines 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 firms to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company specifically may be required to allow third-party marketplaces on its products, and let people to install apps straight from developer sites.

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

The technology firm cautioned the United Kingdom could face delays to receiving updates - as has happened in the European Union - which the company blames on strict rules.

For example, some Apple Intelligence capabilities which have been rolled out in other parts of the world are not available in the EU.

"Apple encounters fierce competition in every market where we do business, and we work tirelessly to create the finest offerings, solutions and user experience," the organization said in a statement.

"Britain's implementation of EU-style rules would undermine that, leaving users with weaker privacy and safety, slower availability to latest functions, and a fragmented, less seamless experience."

The Search Giant's Position

Google device owners can presently use alternative marketplaces - though critics 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 downloading apps straight from websites, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the rationale for the current classification," a Google policy executive remarked.

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

"Currently available are 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 continued.

Android is an freely available software, which means developers can utilize and develop on top of it for free.

The company argues this means it promotes market competition.

But advocacy organizations said curbs on these firms' dominance in different nations "currently assist enterprises to innovate and providing customers more choice".

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

Ryan Stevens III
Ryan Stevens III

A tech enthusiast and writer with a passion for exploring emerging technologies and their impact on society.